A major South Korean steel mill booked a 32,000-tonne scrap cargo from the United States on Monday January 7 based on a price of $311 per tonne cfr for heavy melting scrap 1.
It paid $316 per tonne, or a $5 per tonne premium, for 29,000 tonnes of shredded scrap and $321 per tonne, or a $10 per tonne premium, for 3,000 tonnes of plate and structural scrap.
A South Korean mill was also heard to have bought Japanese H2 at ¥32,500 per tonne cfr, or $299 per tonne cfr, shredded scrap at ¥34,500 per tonne fob Japan and Shindachi scrap at ¥37,500 per tonne fob Japan on Tuesday January 8. Freight rates from Japan to South Korea are presently at $20-25 per tonne.
Some traders said the high demand from South Korea was due to low scrap inventory levels there, and that the shift in demand towards bulk imports...