Following the long absence of ex-US scrap deals in South Korea, South Korean steelmaker Hyundai Steel has concluded a new deal from the US West Coast.
SteelOrbis has learned that Hyundai Steel has bought 45,000 mt of HMS 1 scrap from the US at the price level of $625/mt CFR. The material is expected to arrive in South Korea in May, according to sources.
The price is very low as compared to the offers SteelOrbis reported at $655/mt CFR on March 21. However, as compared to the same producer’s purchase of Russian A3 scrap concluded last week at $620/mt CFR and strong Japanese scrap quotations, it is similar to the general market price range and the purchase has been closed at a desirable price level for South Korean mills.
Meanwhile, there are some concerns regarding inflation rates in South Korea. With the new South Korean President Yoon Suk-yeol’s plan to allocate $41 billion to the economy to compensate for the damage caused by the spread of Covid-19, the issue of inflation is once again being discussed as it may push prices up further. According to South Korea’s trade ministry, the impact of the Ukraine-Russia war on commodity prices was reflected in imports surging 27.9 percent year on year, resulting in a trade deficit of $140 million.
