South Korean producers are showing little interest in Japanese scrap, except for POSCO which shares bids from time to time to procure the scrap grades it needs and fails to find in the domestic market. Meanwhile, SteelOrbis hears that Hyundai Steel, another major producer in the country, will be focusing on the domestic scrap market once again to lower its production costs. Meanwhile, South Korean producers continue to order scrap from Russia.
A South Korean producer has concluded a deal for Russian A3 grade scrap at $335/mt CFR. Last week, there was a booking done at around $330/mt CFR South Korea for this grade. Market sources report that this is not considered a significant change in prices for now.
On September 27, POSCO has shared bids for Japanese shredded scrap at JPY 45,500/mt ($319/mt) CFR. POSCO’s previous bids for this grade were at JPY 51,000/mt CFR on August 30. The JPY 45,500/mt level indicates FOB-based prices for Japanese shredded scrap are at around JPY 42,500/mt or $298/mt, with freight between South Korea and Japan being around JPY 3,000/mt.
Considering the gap between ex-Japan shredded and H2 scrap prices at around JPY 3,000-4,000/mt, this means indications for ex-Japan H2 prices for South Korea are at JPY 38,500-39,500/mt FOB or $269-277/mt FOB.
POSCO has also shared bids for Japanese HS grade scrap at JPY 46,500/mt ($326/mt) CFR.