South Korean scrap importers have focused on purchases of ex-US and ex-Russia material this week due to high prices from Japan.
As SteelOrbis reported earlier, about 32,000 mt of ex-US H1 scrap was traded at $282/mt CFR South Korea this week. “It is in the market range or a bit on the higher side,” a trader said, adding that buyers are following a conservative approach this week. Moreover, about 15,000 mt of Russian A3 scrap has been purchased by the same South Korean steel mill at $269/mt CFR recently. The price is $11/mt higher than the previous small-volume booking last week.
The lowest possible tradable price level for Japanese H2 scrap has been JPY 26,500/mt ($248/mt) FOB, which corresponds to $268-271/mt CFR South Korea, sources said. There have been no sizable volumes sold recently and only very small purchases have been possible. Offers are still above JPY 27,000/mt ($253/mt) FOB and are not workable. It is expected that ex-Japan prices will go down in the future as exporters have shown a greater hurry to sell recently and will have to cut prices to reach deals. “I think we just passed the top,” an Asian trader said.