Most scrap importers in South Korea have been resisting further price increases and have decided to postpone purchases, mainly focusing on sourcing local scrap. Only one deal for a limited volume of Russian scrap has been done recently, while most exporters have not been ready to sell at prices the buyers can give.
A contract for 10,000 mt of Russia A3 scrap was done at $329/mt CFR S. Korea early this week. Sources have said that one mill gave such a bid late last week and was finally able to purchase this week. Though this level is higher than the nominal price level of $320/mt CFR reported in the middle of last week, in the current market conditions suppliers have been asking higher prices than $330/mt CFR S. Korea for Russian A3 scrap.
US-based suppliers have been not ready to start negotiations for HMS I at below $355/mt CFR, while the price idea for customers in S. Korea has been just $340/mt CFR, not attractive for sellers at all. They prefer to focus on other sales destinations, on Vietnam for instance.
Trading of Japanese scrap has almost halted this week, as most exporters have been “wating as higher prices have to be accepted soon. The local market is strong,” a Japanese trader said. Last week, several deals for Japanese H2 scrap were at JPY 30,500/mt ($292/mt) FOB, but at the moment most offers are coming at JPY 32,500/mt ($311/mt) FOB. Sources believe that some discounts are possible, but they will be very small.