South Korea’s domestic scrap purchase prices have also risen, pulled up by increasing imported scrap offers . As per a report in SteelDaily, Hyundai Steel and SeAH have lifted domestic scrap purchase prices.
Hyundai Steel hiked the scrap purchase price for its Incheon and Pohang works by up to KRW 20,000/t ($17/t), for Saengcheol products by KRW 10,000/t ($8/t), and for other grades by KRW 20,000/t ($17/t). After this increase, the purchase price for Weight A at the Incheon plant is set at KRW 580,000/t ($488/t) and for Pohang plants, it is KRW 590,000/t ($497/t).
SeAH also raised prices by KRW 20,000/t ($17/t) for Saengcheol products. However, purchase prices of other grades surged by KRW 15,000/t ($13/t). In the same line, Dongkuk Steel increased the scrap procurement price by KRW 10,000/t ($8/t), from 18 Oct’21. With this rise, the plant buying price is KRW 580,000/t ($488/t).
Meanwhile, the company may raise the purchase price by KRW 20,000/t ($17/t) till 23 Oct’21 for a new contract. It is expected that in the coming days, it might increase the price for new deals as well.
Domestic scrap prices in Korea are also high under the impact of strong prices of steel scrap in East Asia, mainly from Japan. As per reports by SteelDaily, the price difference between imported Japanese scrap and domestic scrap in South Korea have widened significantly.
Imported scrap market
Apart from domestic, Korean steelmakers also booked imported scrap in the last few days.
- Hyundai Steel raised bids for Japanese cargoes: Bids have gone up by JPY 5,500/t ($48/t) for premium Shindachi bara scrap and JPY 8,500 ($74/t) for H2 grade on 14 Oct’21. Bids have risen in line with a hike in export offers by Japanese suppliers following a surge in Kanto tender bids.
- Dongkuk books Russian scrap: Dongkuk Steel has booked 27,000 t of Russian A3 scrap cargo, as per SteelDaily reports. The deal has been finalised at $534/t on CFR basis. Prices are up sharply by $51/t against the previous deal concluded on 30 Sept’21.
South Korea scrap imports fall: South Korea recorded ferrous scrap import volumes at 0.41 mn t in Sept’21, down by 18% m-o-m against 0.5 mn t in Aug’21, as per data maintained with SteelMint. Import volumes declined due to discrepancies in bids and offers which slowed down market activities. Also, deliveries declined after the Russian government officially announced hike in the export duty of ferrous scrap which made Korean buyers take a step back.
Outlook
Overseas scrap prices are already on the higher side so, it is anticipated that domestic prices would remain high, in line with international markets.
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