A slight increase has been recorded in South Korean steel mill Dongkuk’s ex-Russia transaction for A3 grade scrap, though this level is considered to be very low for now after the recent increase in Japan’s export and local prices.
SteelOrbis has learned that Dongkuk Steel concluded a booking for 25,000 mt of Russian A3 grade scrap at $483/mt CFR early this week, which is $3/mt higher than the previous deal concluded on August 25. The latest shipment date for the cargo is November 21.
The abovementioned price is said to be not realistic for now, sources said, as offers for ex-US HMS are at $510-515/mt CFR minimum.
At the same time, Dongkuk Steel has announced an increase for its local scrap purchase prices. Accordingly, the producer increased its prices by KRW 10,000/mt ($8.45/mt). With this decision, Dongkuk’s Incheon plant has raised its prices to KRW 560,000/mt ($473.5/mt) for A weight scrap. With this increase, Dongkuk’s domestic scrap prices are now KRW 10,000/mt higher than Hyundai’s.
Hyundai’s scrap consumption has indicated a sharp decline amid the strike at Dangjin Steelworks, the maintenance works at its 120-tons EAF, and the lower production levels in its profile plant.
This week, a number of deals at higher levels have been reported for ex-Japan scrap. SeAH Steel has booked 5,000 mt of ex-Japan shredded scrap and a 2,000 mt lot of H1/H2 scrap at JPY 60,500/mt ($545/mt) CFR and at JPY 56,200/mt ($506/mt) CFR, respectively. Another South Korean steelmaker POSCO has been forced to increase its bid for ex-Japan shredded scrap by JPY 500/mt ($4.5/mt) from the previous level heard early this week, to JPY 61,000/mt ($549.5/mt) CFR, in order to obtain material. Meanwhile, the bid for HS scrap has been settled at JPY 64,000/mt ($576.5/mt) CFR.
$1 = KRW 1,182