Fe Scrap Export Negotiations Restart between South Korea and Japan

Japanese ferrous scrap exporters restarted new export negotiations with South Korean importers after Japanese long holidays in early May. Hyundai Steel of South Korea offered buying price at FOB 36,000 yen per tonne for H2 grade to Japanese scrap dealers and shippers last week, according to Japanese large dealer source. The offer price is lower by about 2,500 yen than April contract price, the latest high price. For new cutting scrap, Hyundai Steel is offering around FOB 41,000 yen. New cutting scrap supply seems tight in South Korea, said another Japanese dealer.

Ferrous scrap market price maintains weak in East Asia. The weak trend presses Japanese ferrous scrap market price downward. New export negotiations were inactive between Japanese exporters and South Korean scrap users since U.S. scrap export price to East Asia currently became lower than Japanese price. However, one Japanese dealer showed an expectation domestic market price might slightly recover along restart of the export negotiations.