While most South Korean producers have been staying away from imports due to planned maintenance works or the more attractive domestic scrap prices in the country, South Korean steel producer POSCO has continued to buy Japanese scrap. A South Korean source at a major producer said, “They are basically out of the market right now. Maybe we can buy small spot cargoes from Japan, but that’s about it.” Therefore, South Korea is not an exception in the region, preferring Japanese cargoes instead of US deep sea bulk bookings.
Meanwhile, SteelOrbis has learned that POSCO has shared bids for shredded scrap at JPY 57,000/mt ($385/mt) CFR or JPY 54,000/mt ($365/mt) FOB. Market players state this level is JPY 500/mt higher as compared to the bids shared last week.
Also, POSCO’s bids for Japanese HS grade scrap are at JPY 57,500/mt ($389/mt) CFR or JPY 54,500/mt ($369/mt) FOB, up JPY 1,000/mt week on week. SteelOrbis has learned HS scrap was sold to Vietnam at $418/mt CFR, up $8/mt week on week.
There is a rumour of a bulk ex-Australia HMS I/II 80:20 scrap cargo sold to South Korea at $400-405/mt CFR, but this information was not confirmed by the time of publication. A South Korean source reported that the indications for ex-US West Coast HMS I/II 80:20 bulk cargoes are at $405/mt CFR South Korea, because “sellers insist on the price.”
$1 = JPY 147.9