IRON and STEEL
South Korea’s leading EAF steelmaker - Hyundai Steel has booked two bulk scrap cargoes one after another from USA and Russia last week in preparation for January requirement.
Last week, the steelmaker contracted US bulk scrap cargo for end January shipment. One of the leading supplier in US, SIMS metal sold the cargo comprising total 45,000 MT of HMS 1 at an average price of USD 335/MT, CFR. It was a drop of USD 23/MT as against last deal concluded for US bulk scrap at USD 358/MT during the early October.
In line with this, Hyundai Steel also contracted about 10,000 MT Russian A3 grade ferrous scrap recently. The contract price reported at USD 329/MT, CFR as against USD 335/MT, CFR levels during end-Nov'18.
It seems that the steelmaker has signed a series of consecutive US and Russian steel scrap bulk deals in preparation for the reduction of steel scrap in winter. Usually in winter season, supplier markets observe sharp fall in collection rate and scrap supply decreases.
In addition, global scrap prices have moved down sharply which could have attributed to these bulk deals.
Hyundai Steel cuts domestic scrap purchase price further - South Korean domestic scrap prices show no signs of bottoming out. Southern steelmakers scrap inventories have been saturated for more than four weeks. Supply is estimated to have remained high compared to consumption following which Hyundai Steel lowered scrap purchase price successively at Pohang works by KRW 10,000/MT (USD 9).