South Korean Steel Mills Book 150,000 MT Bulk Scrap; Prices Inch Down

South Korean steel mills have continued buying multiple bulk scrap cargoes at corrected prices since last two weeks. Massive scrap bookings comprising another 152,000 MT mixed scrap have been made for Mar-April deliveries this week.

According to reports, this could be the major variable for Mar’19 scrap market.

Hyundai Steel Books two more US bulk scrap cargoes - South Korea’s leading EAF steelmaker - Hyundai Steel heard to have booked two more bulk scrap cargoes. Schneider steel company sold a cargo comprising 40,000 MT and SIMS metal company sold another 45,000 MT mixed scrap at an average price equivalent to HMS 1 at USD 302/MT, CFR. These cargoes are scheduled for Mar’19 and Apr’19 delivery respectively.

Korea Steel & SeAH Besteel book US cargoes for March delivery - Korea Steel has signed a contract of 32,000 MT mixed scrap from SIMS metal at an average price of USD 306/MT (HMS 1), CFR. The cargo is scheduled for mid-march delivery comprising 27,000 MT HMS 1&2 (80:20) and 5,000 MT of Shredded scrap.

SeAH Besteel company contracted for 35,000 MT scrap from the same supplier, SIMS metal USA. The cargo sold at an average price of USD 304/MT, CFR.

Imported scrap prices fell USD 5-7/MT W-o-W - Last week, US bulk scrap cargoes were booked by leading steel mills like Hyundai, Hwangyang and Dongkuk at USD 311/MT, USD 315/MT and USD 308/MT respectively. While Hyundai Steel had booked a Russian cargo equivalent to A3 at USD 301/MT, CFR. US scrap prices could have come under pressure amid slow demand from Turkish steel mills.

It is now expected that South Korea will observe several bulk vessels arriving at steel mills in February and March. This will have a considerable impact on both the domestic and imports markets.

On the other hand, Japanese steel mills haven’t resumed scrap purchases significantly keeping export offers unchanged. H2 scrap export prices in the Tokyo region remained stable at JPY 29,000-30,000/MT, FoB.