The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $246/mt cfr South Korea, down by $4/mt.
Following the footsteps of mills in South Asia, those in South Korea lowered their bids for US-origin containerised scrap. A subdued finished steel hit trades and only a few deals were heard for US-origin HMS 1&2 (80:20) at $245-248/mt cfr South Korea. Mills and traders lowered bids citing a decrease in Turkish ferrous scrap import prices. The index for HMS 1&2 (80:20) decreased by $10/mt to $257.5/mt cfr Turkey on Tuesday from June 16.
The index for containerised shredded and P&S scrap settled at $255/mt and $265/mt cfr South Korea, respectively, both down by $5/mt from prior Wednesday and by $10 from June 10. Few trades were heard for shredded at $255/mt cfr South Korea.
The indexes for busheling and #1HMS fell by $5/mt and $3/mt to $270/mt and $252/mt cfr South Korea, respectively.
In the bulk market, South Korean steelmaker Dongkuk steel booked #2 HMS at JPY26,500/mt cfr South Korea or JPY25,000-25,500/mt fob Japan, down by JPY1,500-2000/mt from the prior bulk deal. South Korean mills lowered their bids for Japanese #2 HMS to JPY24,000-24,500/mt fob Japan and trades were limited due to a wide disparity between offers and bids.
Demand for imported scrap slowed down this week after mills purchased bulk cargoes from the US, Japan and Russia last week.
Despite falling inventories, steelmakers including Dongkuk, Seah, YK, Daehan, Hyundai Steel lowered domestic scrap purchase prices by KRW10,000-15,000/mt del plant this week. The expect improved scrap supply to pressure prices in the near term.
The Davis Index for domestic Heavy A settled at KRW320,000/mt ($264/mt) del Incheon, down by KRW10,000/mt from the prior Wednesday. The weekly Davis Index for domestic Light A settled at KRW275,000/mt delivered Pohang plant, down by KRW15,000/mt.