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Dongkuk Steel Gets US Scrap At $467 C&F For No1 HMS
South Korea's Dongkuk Steel Mill Co recently secured a ferrous scrap cargo of 40,000 tons from the USA at around US$467/MT C&F for No1 HMS under the company's negotiated deal with Australia-based Sims Metal Management Ltd for April shipment. The negotiated price is higher by nearly US$8 than the earlier settlements of ferrous scrap imports into South Korea from the USA.

New offer prices of US ferrous scrap to South Korea, however, are thought to have fallen to a range of US$460-465/MT C&F for No1 HMS until now. As a result, it looks as if the ferrous scrap import market in East Asia has strong signs of falling back for deepsea cargoes.

It is understood that Dongkuk Steel's negotiated price this time borders on the seller's hopes. But South Korean steelmakers as a whole are said to be seeking new purchases of deepsea cargoes at prices below US$460/MT C&F for No1 HMS again.

Suppliers of deepsea cargoes were bullish in their deals of exports to South Korea in February when their offer prices stood at US$470/MT C&F or beyond for No1 HMS. On the contrary, South Korean steelmakers were trying to buy deepsea cargoes at US$460/MT C&F or below for No1 HMS. As a result, the negotiations between the two sides were believed to have broken down then.

There are strong signs of a further decline, too, in the containerized ferrous scrap market for imports into Taiwan. The latest offer prices have slid to around US$435/MT C&F for a mix of 80% No1 HMS/20% No2 HMS, according to market sources. By comparison, offer prices last week were US$450-455/MT C&F for the HMS mix when a high of US$450/MT C&F was reported for an agreed condition. Since then, negotiated prices have fallen back to a level of US$445/MT C&F.
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last modified : Mon 19 Mar, 2012 [11:21]
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