Major South Korean steel producer and scrap importer Hyundai Steel has decided to book a large volume of ex-US scrap, the price of which is lower than the indication in late September, but in general it signals a stabilization of scrap prices in South Korea for now. Bids for Japanese H2 scrap have remained at the previous price after discounts.
About 45,000 mt of ex-US HMS I scarp were sold to Hyundai Steel at $306/mt CFR last week. Suppliers from the US were asking for $315/mt CFR and higher for HMS I in middle and late September, but when sentiment worsened and prices in other buying countries in Asia like Vietnam also dropped, they decided to cut their prices too. The shipment of the 45,000 mt is scheduled for November-early December, sources said. Some market sources are expecting an even lower price for ex-US HMS I.
There have been reports of a cargo of ex-US HMS I/II 80:20 traded at slightly below $310/mt CFR to Vietnam, but this has not been confirmed by the time of publication.
At the same time, bids for Japanese H2 scrap have remained at the same low level as a week ago. Dongkuk Steel was bidding at JPY 27,000/mt FOB for H2 scrap last week, the same level as previously voiced by Hyundai Steel. “Hyundai skipped buying Japanese H2 for now,” a source said. As a result, the reference price level for ex-Japan H2 scrap has remained at JPY 27,000-28,000/mt FOB.
