Overall sentiment in the import scrap market in South Korea has remained weak recently and, though suppliers have been resisting further declines, deals are possible only at low levels.
Negotiations with Russian suppliers have been held by Hyundai Steel, with the producer signing a contract for A3 scrap at $425/mt CFR early this week, though the total tonnage has not been disclosed by market sources. According to reports, it should be around 30,000 mt. The price level in the recent ex-Russia deal is in line with expectations after two ex-US scrap cargoes were booked at $431-432/mt CFR last week. Russian scrap is usually $5-10/mt cheaper than ex-US HMS I in the South Korean market.
There have been very few offers of ex-Japan H2 scrap in the market recently as most exporters have been focusing on current shipments. The most recent deal was at JPY 41,000/mt ($377/mt) FOB, as reported last week. Market sources expect that customers will bid at JPY 39,000-40,000/mt ($359-368/mt) FOB in the next round of purchases, if the global market fundamentals remain bearish.