As the uptrend in the Asian scrap market became more pronounced, South Korean mills bought Russian A3 grade scrap at the end of last week, expecting offers to move up further in the near future. It is observed that import scrap offers to South Korea from first-tier suppliers are still moving up and Russian scrap prices have been attractive under the current circumstances.
SteelOrbis has learned that South Korean producer Hyundai Steel has booked 15,000 mt of Russian A3 grade scrap at $513/mt CFR, while Dongkuk Steel signed a contract for 10,000 mt of A3 grade scrap at the same levels at the end of last week. As SteelOrbis reported on January 13, Russian suppliers were offering the material to South Korea at $515/mt CFR. The previous ex-Russia deal for A3 grade was done by Hyundai Steel on November 26 at $519/mt CFR.
Japanese sellers’ offers for H2 grade scrap to South Korea have increased to a minimum of JPY 52,000/mt ($454/mt) FOB. With the freight at JPY 3,500-4,000/mt ($30-35/mt), their offers stand at JPY 55,500-56,000/mt ($484-490/mt) CFR. On January 13, Hyundai Steel increased its bid for H2 grade to JPY 49,000/mt ($428/mt) FOB or JPY 52,500/mt ($458/mt) CFR.
Japanese H2 scrap offers are currently higher than buyers’ ideas for purchases, while US suppliers’ offers to the region are rare but are still higher than their Russian counterparts’ price ideas. Ex-US HMS I/II 80:20 scrap offers to Vietnam were in the range of $520-530/mt CFR on January 14.