The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $238/mt cfr South Korea, down by $8/mt. The index for P&S 5ft also fell by $8/mt to $257/mt cfr South Korea.
Mills are struggling with weak finished and semi-finished steel demand and prices in the domestic and other Asian markets, mainly the bearish China market.
Steelmakers and traders have thus lowered their bids. Imported ferrous scrap prices in South Korea were also weighed down by a fall in Turkish import prices. The index for US-origin HMS 1&2 (80:20) decreased by $6/mt to $250.8/mt cfr Turkey on Tuesday from June 24.
The weekly index for containerised shredded and machine shop turnings scrap settled at $250/mt, down by $5/mt and $224/mt cfr, down by $6/mt South Korea. Bids for shredded were at $248/mt cfr South Korea.
The weekly indexes for busheling and #1HMS both fell by $6/mt to $264/mt and $246/mt cfr South Korea, respectively.
In the bulk market, South Korean steelmaker Posco steel booked shredded at JPY26,500/mt cfr South Korea or JPY25,000-25,500/mt fob Japan, down by JPY1,500-2000/mt from the prior bulk deal. South Korean mills lowered their bids for Japanese #2 HMS to JPY22,000-22,500/mt fob Japan and trades were limited amid a possibility of a further decline in prices.
Offers from US suppliers dropped to $265-270/mt cfr South Korea. There were no buyers for the scrap of Russian-origin.
Despite falling inventories, steelmakers including Dongkuk, Seah, YK, Daehan, Hyundai Steel lowered domestic scrap purchase prices by KRW10,000-15,000/mt del plant this week. Improved scrap supply for higher grades like busheling and HS scrap put pressure on prices.
($1=KRW1,203.79; JPY107.51)