While some South Korean mills are showing interest in Russian scrap, South Korean producers’ appetite for Japanese H2 is still on the low side. “We are increasing our procurement from the local market to control our costs,” a source at a major South Korean mill commented. Over the long Choosuk holiday in South Korea, scrap demand has remained on the low side. Trading is expected to return to normal levels in the coming week.
SteelOrbis has learned that some South Korean mills have booked some Russian A3 grade scrap at $330/mt CFR, which is significantly lower than the prices recorded for this grade at $340-350/mt CFR at the end of August. This price level was not confirmed by the time of publication, though last week levels of $335/mt CFR South Korea were reported by sources.
Domestic HMS I scrap prices in southern South Korea are now at around $280-295/mt DDP producer, $10-25/mt lower as compared to the prices recorded on August 16. Meanwhile, HMS 2 scrap prices in the local South Korean market are at $270-275/mt DDP producer, market sources report.