Containerized imported ferrous scrap prices rose in South Korea this week on the back of increased asking prices. Demand, however, is still under pressure amid enough inventories with steel mills.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $273/mt cfr South Korea, up by $10/mt, with limited deals heard at the index price.
Mills preferred to negotiate for Russian and Japanese bulk scrap over higher-priced US-origin material. A deal for Japanese bulk scrap cargo was at JPY33,500/mt($321/mt) cfr South Korea, with buyers restocking before offers rise.
In the coming days, mills also expect finished steel export and domestic demand to recover, aided by billet exports to other Asian countries. Bids for billets rose by $10/mt on Wednesday to $450/mt cfr Southeast Asia. China reduced billet imports amid high inventories but could return to the market if the domestic demand increases.
The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $9/mt to $285/mt, $277/mt, and $282/mt cfr South Korea, respectively. South Korean mills focused on more bulk cargoes, priced lower than containerized scrap.
South American suppliers offered HMS 1&2 (80:20) at $265-270/mt cfr South Korea on Wednesday.
Domestic ferrous scrap prices trended flat this week. Hyundai had planned to reduce domestic scrap prices by KRW10,000/mt ($8.8/mt) last week but has delayed the decision on the back of rising imported scrap prices. Traders believe South Koreans might stay away from the market this week also.
($1=KRW1,134)