S KOREA STEEL SCRAP: Prices fall but sell-side resistance grows

Prices for import cargoes of steel scrap delivered to South Korea have continued to fall over the past week, but Japanese sellers are starting to resist further drops, sources said on Friday January 29.

A South Korean steelmaker purchased 10,000 tonnes of H2 scrap at ¥36,480 ($350) per tonne fob Japan on January 26, Fastmarkets heard.
But after this deal, key Japanese scrap buyer Tokyo Steel reduced its purchase prices by another ¥3,000 per tonne, thus dropping the import market again.
Tokyo Steel has slashed its buy prices every day in the past week, with its latest purchase prices down by ¥1,000 per tonne day on day at all of its steelworks except for Utsunomiya starting January 30.
A second South Korean steelmaker on Thursday then bid ¥35,000 per tonne fob for H2 and ¥39,000 per tonne fob for HS, shredded and Shindachi busheling.

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Lee Allen

January 29, 2021

12:58 GMT