CHINA STEEL SCRAP: South Korean buyers pay steep premium over China

Buyers in South Korea have been willing to pay higher prices for Japanese scrap recently, outbidding Chinese buyers, sources told Fastmarkets on Wednesday June 23.

The South Korean market has been highly interested in higher-quality scrap from Japan in recent months amid high special steel demand and rising scrap 
intake at some basic oxygen furnaces (BOFs) due to carbon neutrality policies at a major Korean mill.
A buyer in South Korea purchased Japanese heavy scrap (HS) in bulk at ¥59,000 ($532) per tonne fob Japan this week, up from last week’s ¥57,500 per tonne fob, sources said.

After accounting for the freight costs, Chinese buyers now need to pay at least $565 per tonne cfr China to reach parity with South Korea - much higher than the prices acceptable to Chinese buyers, a...

Published

Lee Allen

Paul Lim

Tianran Zhao

June 23, 2021

11:20 GMT

Shanghai, Singapore