South Korea’s domestic scrap purchase prices have risen today, as per a report in SteelDaily. Hyundai Steel and SeAH lifted the prices today. The reason for the speedy hike lies in domestic mills buying local scrap owing to increased prices of the overseas material.
- Hyundai Steel hiked the scrap purchase prices for its Incheon, Pohang works and Dangjin works by up to KRW 20,000/tonne ($17/t). After this surge, the purchase price for Weight A at the Incheon plant is set at KRW 610,000/t ($521/t) and for Pohang plants, at KRW 625,000/t ($534/t).
- SeAH Besteel also raised prices by up to KRW 20,000/t ($17/t) today, wherein for Saengcheol compressed A and B, and guillotine A and B, prices were increased by KRW 10,000/t ($8/t). However, purchase prices of other grades surged by KRW 15,000/t ($13/t).
- In the same line, POSCO Steel, South Korea’s prominent steelmaker, increased the scrap procurement price at its Pohang and Gwangyang works by KRW 10,000/t ($8/t), and that for the additional grades by KRW 15,000 ($13/t) from today.
Meanwhile, SeAH Changwon Special Steel will raise its scrap prices by KRW 20,000/t ($17/t) with effect from 26 Oct’21.
External scrap market synopsis
Over and above domestic, Korean steelmakers booked imported scrap in the past few days.
- Hyundai Steel raises bids for Japanese cargoes: Bids went up by JPY 2,500/t ($22/t) on 22 Oct’21 for H2 grade scrap and are now at JPY 54,500 ($479/t) compared to the last bid on 14 Oct’21. Bids have risen in view of the recent price increase by Tokyo Steel and rising bids in the Kansai scrap tender.
Outlook
It is predicted that domestic prices will stay high for the time being, in line with overseas scrap prices which are already on the higher side.
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