Containerized imported ferrous scrap prices rose in South Korea this week on the back of increased asking prices. Demand, however, is still under pressure.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $263/mt cfr South Korea, up by $3/mt. Although it has been over two weeks since the Chuseok holidays, containerized trades remained close to none, defying market traders’ expectations of a demand surge.
In the bulk market, mills were said to be negotiating for Russian and Japanese cargoes over US-origin material, asking prices for which increased. Many mid-size EAFs are yet to show any buying interest. In the coming days, however, mills expect finished steel export and domestic demand to recover with some help from China’s buying. Bids for billets fell by $5/mt on Wednesday to $440/mt cfr China due to high inventory.
The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $3/mt to $276/mt, $268/mt, and $273/mt cfr South Korea, respectively.
South American suppliers offered HMS 1&2 (80:20) at $260/mt cfr Taiwan and South Korea on Wednesday.
Given that global ferrous scrap prices are rising, South Korean mills are waiting for domestic demand to increase in the auto and infra sectors before booking more material .
Domestic scrap prices were unchanged, and market participants are expecting Hyundai and Dongkuk Steel to lower bids for domestic scrap by KRW10,000/mt del mill on Thursday. An announcement to this effect was earlier expected on Monday. But these mills were said to have delayed their decision to revise prices amid a shortage of domestic scrap.
($1=KRW1,146)