South Korea focuses on the Japanese market

The sharp rise in deep-sea import prices across Asia has prompted South Korean buyers to consider Japanese scrap deals this week, market sources told Fastmarkets.

South Korean buyers are moving away from the deep-sea market due to high prices.

The bearish sentiment in the Chinese steel markets is weakening domestic and imported scrap prices in China.

Deep sea cargo offers to Vietnam have been heard this week at around $560-565 per tonne cfr for HMS 1&2 (80:20), while some offers to Bangladesh exceeded $600 per tonne cfr last week.

No solid deep-sea offers to South Korea have been heard this week, but sources estimate that offers for deep-sea HMS 1&2 (80:20) will be at least $555 per tonne cfr.

With deep-sea markets following a warm streak, there has been more activity for Korean buyers in the Japanese scrap market this week.

A South Korean steelmaker's offer for H2 was heard in Japan at ¥54,500 ($478) per ton delivered on board.

A second South Korean steelmaker had bid at Yen 57,500 per tonne cfr for H1:H2 (50:50) scrap earlier in the week. Bulk shredded material originating in Japan was sold at Yen 65,000 per tonne in South Korea late last week, with a transaction heard at Yen 66,200 per tonne earlier this week, sources said.

Freight costs from Japan to South Korea this week ranged from ¥4,000-5,000 per tonne, depending on destination and port of loading, sources said.