South Korean mills have been more interested in import scrap purchases recently and, though demand has not been booming, some deals for scrap of different origins have been signed at higher prices compared to bookings earlier this month.
Japanese scrap has been in demand in South Korea. Hyundai Steel purchased H2 at JPY 50,000/mt ($459/mt) FOB last week, while HS and shindachi have also been booked - at JPY 55,000/mt ($505/mt) FOB and JPY 56,000/mt ($514/mt), FOB respectively. These prices were announced by the producer as official bids last week. But apart from Hyundai Steel, at least two mills in South Korea have signed contracts at similar price levels. The lowest tradable value for H2 scrap has been heard at JPY 49,500/mt ($454/mt) FOB.
In addition to this, a contract for an ex-US HMS I bulk cargo has been rumoured in the market at $515/mt CFR, but this could not be confirmed by the time of publication. Sources said that most offers have not been below $530/mt CFR and that this price is “very good.” As a result, the next bookings are hardly expected to be below $525/mt CFR.
A small-volume bulk contract for HMS I/II from New Zealand has been signed at $505/mt CFR.