Prices for import scrap are under pressure in the South Korean market with major mills cutting their bids. Falling steel prices in China have dampened sentiment.
According to sources, Dongkuk Steel has started to bid at JPY 47,000/mt ($431/mt) FOB for ex-Japan H2 scrap, which is JPY 2,000/mt ($18/mt) below the level announced by another South Korean mill Hyundai Steel last week. Some market sources said that it will be hard to secure any big volumes at such a low price level as Japanese suppliers are trying to keep offers stable. However, much lower bids indicate a worsening of sentiments in the market and a weak outlook for the near future. Most offers for H2 from Japan have not been below JPY 48,500-49,000/mt ($445-450/mt) FOB so far.
Also, there is information in the market that Dongkuk Steel has purchased a relatively small volume of around 10,000 mt of ex-Russia A3 scrap at $505/mt CFR. This price level is $5/mt below the assessment last week. Nevertheless, market sources said that the price idea of Hyundai Steel for ex-Russia scrap has already been lowered to below $500/mt CFR.