Late last week, major South Korean steel producer Hyundai Steel signed a number of deals for ex-Russia and ex-Japan scrap at prices in line with expectations. Some additional purchases are expected this week.
Hyundai Steel purchased about 20,000 mt of ex-Russia A3 scrap at $445/mt CFR last week. The price is $20/mt higher than a deal reported to S. Korea on March 24. But compared to the estimated market level last week, the contract price is in line with expectations, indicating a stabilization following the hike in early April. Offers have been reported at $455/mt CFR for ex-Russia scrap, but customers are likely to insist on lower levels.
The tradable value for ex-US HMS I scrap to S. Korea has been estimated by market sources at $455-460/mt CFR, taking into account the latest deals to Vietnam.
In addition, Hyundai Steel bought about 30,000 mt of ex-Japan scrap at the bid prices announced last week. Most of the volume was for higher grade scrap: shredded, HS and shindachi at JPY 47,000/mt ($435/mt) FOB, JPY 48,000/mt ($444/mt) FOB and JPY 49,000/mt ($453/mt) FOB, respectively.