Two major South Korean steelmakers Hyundai Steel and Dongkuk Steel have booked ex-US scrap this week, as they were seeking to restock but had no other options. Moreover, suppliers from the US West Coast have been actively offering to the market, trying to liquidate significant volumes in the short term and to prepare for a possible uptrend, sources told SteelOrbis.
Two cargoes of ex-US HMS I scrap totaling 45,000 mt and 30,000 mt have been sold at $431-432/mt CFR to S. Korea. This means that the suppliers decided to provide some sizable discounts to sell large volumes as last week the indicative price level was at $450/mt CFR. The previous deal for ex-US scrap concluded by Dongkuk Steel was at $443.5/mt CFR for April delivery, as reported on February 24. Market sources have mentioned a lack of availability of Russian A3 scrap and high offer prices, and so ex-US scrap has become the best option for mills to restock with higher quality scrap.
The latest bids and deals for some limited tonnages of ex-Japan H2 scrap to S. Korea were at JPY 41,000/mt ($376/mt) FOB. But by the end of the week, most large suppliers have withdrawn offers as no one wanted to provide such a low price level and as sellers have faced big transportations issues, being unable to find vessels.