Imported ferrous scrap prices in South Korea increased by $5-10/mt. Major shipping companies have hiked freight charges amidst a shortage of containers, which drove the prices up. Trades for imported scrap were thin on weak steel demand and increased prices.
The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $258/mt cfr South Korea, up $8/mt from the prior Wednesday.
Many suppliers from the US and Europe made no offers this week on low availability of containers and bulk vessels from the US to South Korea. The Covid-19 outbreak has led to a shortage of empty containers globally.
The weekly Davis Index for containerised shredded settled at $265/mt cfr South Korea, up $8/mt, in line with a $7-10/mt rise in US-origin west coast ferrous scrap this week.
South Korean mills shied away from buying US and Russian bulk ferrous scrap cargoes. Chinese enterprises have only recently resumed operations. South Korean mills now wait for China’s finished steel exports to resume for a clear price direction.
Many automakers halted productions due to the Covid-19 supply chain disruptions. Demand for Busheling scrap dropped significantly, according to sources.
In the domestic market, Hyundai Steel has kept its domestic scrap purchase prices flat since Feb 17.
Heavy A scrap is priced at KRW280,000/mt ($230/mt) del Incheon plant and Light A at KRW245,000/mt del Incheon.
The steelmaker has lowered its bid for domestic scrap purchase by KRW10,000/mt, effective March 3.
Hyundai Steel’s bids were unchanged for Japanese #2 HMS at JPY22,000/mt fob Japan.Suppliers, however, are unlikely to accept these bids as they are lower by at least JPY1,000/mt than the current price of JPY23,000/mt fob Japan, according to sources.