Imported ferrous scrap prices in South Korea rebound in the week. Trades for imported containerised scrap, however, were limited with no major bulk deals reported. Mills preferred domestic scrap over imported ferrous scrap as it was competitively priced.
Late in the week ended Feb 14, 60,000mt of Japanese origin #2 HMS was booked by a major South Korean mill at JPY22,000/mt ($199.35/mt) fob Japan.
The Davis Index for containerised HMS 1&2 (80:20) settled at $250/mt cfr South Korea, up by $9/mt from the prior week. Dockside prices in the US and UK rebounded in the week, giving ferrous scrap prices in Asian markets a lift.
The Davis Index for containerised shredded settled at $257/mt cfr South Korea, up by $5/mt from the prior week. Shredded from US-origin west coast suppliers traded at $260-265/mt cfr South Korea this week.
US suppliers increased offers for all scrap grades in containers by $10/mt at the minimum. They expect global scrap prices to be bullish in the near term as Turkish bulk bookings were reported at higher prices from the prior week. The Davis Index for US-origin HMS 1&2 (80:20) settled at $279.91/mt cfr Turkey on Tuesday, up by $4.03/mt from Monday.
Trades of Russian origin A3 grade scrap in bulk cargoes were reported at $247/mt cfr South Korea.Earlier, a bulk cargo deal was reported in the week ending Feb 7 with US origin #1 HMS sold at $261/mt cfr South Korea.
In South Korea’s domestic scrap market, domestic Heavy A scrap traded at KRW280,000/mt ($235/mt) delivered Incheon plant and KRW290,000/mt delivered Pohang plant. Domestic Light A traded at KRW245,000/mt delivered Incheon plant and KRW275,000/mt delivered Pohang Plant.