South Korean steel producers have started to buy Japanese scrap once again, with POSCO leading the way. The producer has announced bids for Japanese scrap this week once more at higher price levels. Local scrap procurement prices in South Korea are also moving up, after domestic prices had hit a historical low in past months. Despite the increases observed in local scrap prices, market sources report that domestic allocation is not enough to meet South Korean mills’ scrap needs.
POSCO has increased its bids for Japanese HS grade scrap by JPY 1,000/mt to JPY 49,000/mt ($331/mt) CFR, up by $5/mt week on week.
The Tokyo Bay HS grade scrap price has moved down by JPY 500/mt week on week to JPY 44,500/mt ($300/mt) FAS or JPY 45,500/mt ($307/mt) FOB. POSCO’s bids for HS grades are now in line with Japan’s export prices.
$1 = JPY 147.08
