Imported ferrous scrap prices in South Korea increased supported by global ferrous scrap prices and tightened supply. Suppliers held offers high on bullish expectations in the coming days.
Steelmakers remained away from buying bulk cargoes as the finished steel demand is still weak and ferrous scrap stock with them remains high.
In bulk markets, US west coast origin HMS1&2 (80:20) in bulk cargoes were offered in the range $245-250/mt cfr South Korea with no takers at those levels. Russian A3 offers heard in the range $220-225/mt cfr South Korea, up from earlier trades concluded at $209-210/mt cfr South Korea.
South Korean mills booked #2 HMS at JPY19,500-20,500/mt fob Japan, up by JPY1,000/mt from the prior Wednesday. Japanese HS scrap was offered at JPY23,000-24,000/mt fob Japan to South Korean mill.
In containers market, the weekly Davis Index for containerised HMS 1&2 (80:20) settled at $223/mt cfr South Korea, up by $7/mt. Steel mills, however, were not interested in accepting higher offers. Offers from US scrap yards were around $230/mt cfr South Korea.
The weekly Davis Index for containerised shredded settled at $235/mt cfr South Korea, up by $7/mt. The index for P&S and busheling settled at $240/mt cfr, up by $8/mt and $255/mt cfr South Korea, up by $10/mt from the prior Wednesday.
South Korean steel resources association has requested major steelmakers to shift their purchase preference to domestic ferrous scrap than overseas markets. Domestic scrap industry is struggling to sell cargoes and scrap suppliers are selling higher-grade scrap at other markets like Indonesia. A South Korean scrap trader informs Davis Index that ferrous scrap exports are picking up.
($1=KRW1,230.83)