Companies like POSCO, SeAH Special Steel, and Korea Special Steel reduced their prices or limited their stocks until the last week of March. Purchasing prices for electric arc furnace construction steel producers in the Yeongnam region are estimated to be in the range of 400,000 to 440,000 won (295-324 USD).
According to Steel Radar, South Korea's HMS 2 scrap prices were recorded at 351 USD on March 20th, but experienced a sharp decline shortly after, dropping to 337 USD. After HMS 2 scrap prices remained at 338 USD as of March 28, it decreased by 2 USD and recorded as 336 USD on April 8.
When comparing Korean products to Japanese products, domestic products are lower by 50,000 to 80,000 won (36-58 USD), although there are differences depending on the company. Due to decreasing domestic demand and weak prices, continued exports are anticipated in the steel scrap sector.
From the perspective of the steel sector, overcoming rumors of a construction project financing crisis in April and laying the groundwork for recovery are essential. A further downward trend is expected in the second quarter. However, factors such as the return of the scrap buying season after inventory adjustments, slowing new import contracts, dependence on domestic supplies, and recovery abroad are seen as factors that could reverse the domestic downward trend.
Analysts suggest the possibility of a recovery in steel scrap prices in April. Factors such as a relatively balanced supply and demand and recovery abroad could contribute to pushing prices up.
Comments
No comment yet.