The weekly Davis Index for containerized HMS 1&2 (80:20) settled at $243/mt cfr South Korea, up by $3/mt on global cues. Mills booked scrap in limited volumes at $240-245/mt cfr South Korea. Offers from sellers in South America for HMS 1&2 (80:20) ranged between $230-235/mt. But most importers were rather interested to bid for Japanese bulk cargoes at prices which were lower than shipments from the Americas.
The index for US-origin P&S 5ft rose by $5/mt to $263/mt cfr, with few trades heard at $260-265/mt levels. The index for containerized shredded increased by $4/mt to $257/mt cfr.
In the bulk market, Hyundai Steel booked around 11,000mt of Russian A3 scrap at $254/mt cfr South Korea. Offers for Japanese #2 HMS were at JPY24,500-25,500/mt fob Tokyo bay, up by JPY1000/mt from the prior week.
Donkuk Steel has placed bids for #2 HMS at JPY24,000/mt fob Japan. These price levels, however, are JPY1,000-1500/mt lower than suppliers’ expectations.
Other steelmakers, POSCO and Seabe Steel are expected to float purchase tender for imported scrap before prices rise further. Following the global trend, domestic scrap prices have also started increasing in South Korea.
Trades for Light A grade were reported in the range of KRW245,000-250,000/mt delivered mill based on the delivery time. Mills raised their domestic scrap purchase prices by KRW5,000/mt ($4.17/mt) after four successive weekly cuts.