South Korean producer POSCO continues to buy Japanese scrap at a stable price level, even though domestic scrap prices in South Korea are once again declining, falling by KRW 20,000/mt ($14/mt). “POSCO’s move seems like an effort to prepare inventory for after the Chuseok holiday,” a source from South Korea commented. South Korean scrap suppliers tend to sell more tonnages before holidays to manage their payments, which leads to decreased scrap flow after holidays. Another South Korean market player stated, “The Korean domestic market price is weak for the time being. However, most sellers are expecting a rebound after the long holiday in October. The holiday starts on the fourth and ends on the ninth, but many will not come back to work until the thirteenth.”
POSCO has kept its bids for Japanese HS grade scrap stable at JPY 49,000/mt ($327/mt) CFR, down by $4/mt on US dollar basis as compared to the levels recorded on September 9. POSCO has kept its bids for Japanese shindachi and shredded scrap at JPY 48,000/mt ($320/mt) CFR.
$1 = JPY 149.70
