After buying large tonnages of import scrap over August, Hyundai Steel and Dongkuk Steel are trying to reduce their purchase quotations for the import material amid the decreases recorded in international scrap market. Also, South Korean buyers have been looking for Russian scrap due to high levels of Japanese scrap offers.
SteelOrbis has learned that South Korean producer Dongkuk Steel has bought 6,000 mt of Russian A3 scrap at $480/mt on CFR, for September shipment. This deal indicates a $15/mt decrease against the previous deal concluded by Hyundai Steel on August 2 at $495/mt CFR. With this booking, Dongkuk Steel is estimated to have bought 26,000 mt of import scrap from Russia in August. It is important to mention that the producer has also announced a KRW 10,000/mt ($8.57/mt) decrease in its local scrap purchasing prices in Pohang and Incheon plants which will come into effect on August 26.
Meanwhile, the latest indicative price level from the US to South Korea for HMS I scrap was at $490/mt CFR, though no new firm offer has been received from the US this week, market players add.
$1 = KRW 1,166