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| Posco Buys US Scrap At $449.50 C&F For No1 HMS |
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South Korea's integrated steelmaker Posco has bought two cargoes of US ferrous scrap from Australia-based Sims Metal Management Ltd at around US$449.50/MT C&F for No1 HMS, it was learned in Tokyo Thursday. The deal provides for April shipment on the US West Coast. Sims' initial offer price to Posco went beyond US$450/MT C&F for No1 HMS. But the two sides are thought to have agreed on a little less than U$450/MT C&F at the final stage. Posco's negotiated price this time indicates an increase of US$75-85 on what was settled in February when South Korean steelmakers took deepsea cargoes of ferrous scrap. It is likely that the Posco purchase at a price level of US$450/MT C&F will serve as something like a benchmark in the ferrous scrap import market for deepsea cargoes in East Asia, market observers believe. By a rough estimate, a price of US$449.50/MT C&F for No1 HMS from the USA would translate into one of Y37,000/MT FOB for No2 HMS from Japan considering quality differences and freight rates, experts point out. The latest contract prices of No2 HMS stand at a level of Y37,000-37,500/MT FOB in Japanese ferrous scrap exports to South Korea. Meanwhile, there are signs that South Korea's Hyundai Steel Co is negotiating for more than one cargo of ferrous scrap from Sims at around US$450/MT C&F for No1 HMS, according to market sources. |
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| last modified : Thu 25 Mar, 2010 [10:52] |
