Lower Ferrous Scrap Price in South Korea

South Korean electric furnace steel makers decrease the ferrous scrap purchase price when they get higher import arrivals. Hyundai Steel decreased the purchase price on June 25 and other makers followed the move to reduce the price by around 10,000 won per tonne. However, the drop is likely not to continue under tight supply. South Korean steel makers increase the scrap purchase from West Coast of USA and Far East of Russia. The makers also increase the purchase from domestic sources. The purchase price reduction by steel makers resulted in 10,000-15,000 won lower ferrous scrap market price in South Korea. POSCO, however, increased the ferrous scrap purchase price by 15,000-20,000 won per tonne in late June. Hyundai Steel also increased the offer by 1,000 yen per tonne for Japanese scrap at weekly tender last week.