Imported ferrous scrap prices in South Korea dropped by another $10/mt this week following global cues. Scrap suppliers eyed South Korean market since steel production in the country is relatively less impacted compared to other countries amid the COVID-19 outbreak.
On March 23, Hyundai Steel lowered its bids for Japanese scrap by JPY1,000/mt from the prior week. Bid for #2 HMS was at JPY21,000/mt fob Japan, down by JPY1,000/mt from the prior set of prices. The steelmaker bid at JPY21,500/mt fob Japan for HMS1&2(50:50), JPY23,500/mt fob Japan for shredded, HS (P&S) and busheling scrap. Bids have dropped to an almost three-year low, according to the mill. Trades for #2 HMS concluded at JPY21,000-21,500/mt fob Japan in this week. Bids subsequently dropped to JPY20,500-21,000/mt fob due to oversupply of scrap and a drop in global ferrous scrap prices to a five-month low.
The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $228/mt cfr South Korea, down by $10/mt from the prior Wednesday. Suppliers from the US looked to explore South Korea as a market since other South Asian countries remained under complete lockdown.
The weekly Davis Index for containerised shredded settled at $235/mt cfr South Korea, down by $10/mt in line with a drop in the US-origin west coast ferrous scrap prices by $10/mt early this week.
Domestic market
Domestic ferrous scrap prices dropped this week, weighed down by successive price cuts by a total of KRW10,000-15,000/mt announced by leading steel mills. The weekly Davis Index for domestic Heavy A del Incheon settled at KRW262,500/mt ($213/mt), down by KRW2,500/mt. The Davis Index for Heavy A settled at KRW252,500/mt del Pohang, also down by KRW2500/mt from the prior Tuesday.
Mills resumed inquiries for busheling scrap from Japan since auto production is expected to pick up in the coming days. The weekly Davis Index for containerised busheling settled at $255/mt cfr South Korea, down by $10/mt from prior Thursday. At their plants in Italy and India, however, South Korean automakers have announced to production halts.
($1=KRW1,229.75)