According to recent analysis provided to SteelOrbis and in line with reported deals, the average prices in leading South Korean steelmakers’ deals have started to converge in mid-January at $305-310/mt CFR for HMS 1 scrap from various origins including the US and Australia. Imported scrap average prices at leading steelmakers were reportedly at $310-315/mt CFR for ex-US Bulk HMS 1 earlier in the month, hence a decline of $5/mt.
Early in the month, Russian A3 scrap was reportedly “carried over into the year in contracts at the average price of $330/mt CFR.” With the latest deals known in the market over the past week, A3 scrap grade prices have now reportedly also decreased to $307-312/mt CFR. A source added that Japanese H2 scrap prices adjusted downward earlier than other destinations since mid-December but “seem to continue stable in the export market at an average contract price for leading steelmakers in South Korea at $295/mt FOB on Japanese H2 scrap, though, some smaller spot market deals may have encountered lower values at end of year.”