South Korean mills have increased their bids for higher grades of Japanese scrap. Since pig iron exports from Russia are limited amid the ongoing war in Ukraine, Asian buyers are seeking larger tonnages of higher scrap grades and prices are going up accordingly. Meanwhile, a South Korean source stated that sentiment in South Korea’s import scrap market is mixed. “Some believe that import scrap prices will move down from the current levels since finished steel demand is not so strong and steel quotations do not support current scrap prices,” the source commented, adding, “However, some believe there is still some room for a further increase.”
South Korean producer POSCO has raised its bids for Japanese HS scrap to JPY 74,000/mt ($612/mt) CFR, JPY 3,500/mt ($29/mt) higher than its previous bid announced on February 18, raising its bids for HS grades a bit higher as compared to Hyundai. The freight between South Korea and Japan is around JPY 3,500-4,000/mt ($29-33/mt). As SteelOrbis reported on March 17, Hyundai’s bids for HS scrap were at JPY 68,500/mt ($566/mt) FOB, while its bids for shredded scrap and shindachi bara grades were both at JPY 68,500/mt ($566/mt) FOB.
POSCO’s bids for shredded have increased by JPY 5,000/mt ($41/mt) since February 18 to JPY 72,000/mt ($595/mt) on CFR basis. Meanwhile, SeAh Steel’s bids for shindachi bara grade are at JPY 75,700/mt ($626/mt) CFR or JPY 72,000/mt ($595/mt) FOB.
Meanwhile, local scrap prices in South Korea have remained stable week on week. Hyundai’s local scrap prices for A weight are in the range of KRW 707,000-730,000/mt ($580-598/mt), while Dongkuk Steel’s prices are still in the range of KRW 700,000-712,000/mt ($574-584/mt).
$1 = JPY 120.90
$1 = KRW 1,219.75
