South Korean ferrous scrap prices inched up this week with market sentiment turning positive in Southeast Asian countries. COVID-19 outbreak has started coming under control and buyer countries have begun lifting lock-down restrictions.
The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $228/mt cfr South Korea, up by $3/mt. Mills slowed purchases for US-origin containerised which was offered at $235-240/mt cfr Taiwan, higher than other supplier countries. Offers for US-origin scrap increased by $4-5/mt due to increase in Turkey’s import prices. Turkey’s HMS 1&2 (80:20) index increased by around $6/mt to $251.85/mt on Tuesday, from last Wednesday.
The weekly Davis Index for containerised shredded settled at $239/mt cfr South Korea, up by $3/mt. No major trades were heard due to increased offers. Offers for HMS 1&2 (80:20) went up by $5 to $230/mt cfr South Korea but trades were heard at $228/mt.
South Korean domestic scrap prices remain high amid falling generation rates. End-user demand though remains weak. Hyundai Steel held domestic scrap prices flat KRW290,000/mt while most other buyers are in ‘wait-and-watch’ mode.
South Korean mills, by and large, were away from bulk markets after booking the required stock ten days ago.