Asian Steel Makers Buy Ferrous Scrap at Large Volume

Steel makers in China, South Korea and Taiwan purchased more than 900,000 tonnes of ferrous scrap including 40,000 tonnes of pig iron for shipment between December and March from Europe and USA. They almost secured the requirement for January-March. The large volume import could result in less export for Japanese scrap. China purchased more than 500,000 tonnes while South Korea bought more than 300,000 tonnes and Taiwan bought more than 70,000 tonnes including 40,000 tonnes of pig iron. They are likely to be out of the market until spring while some Japanese expect the buyers would purchase again after Chinese New Year holiday. Jiangsu Shagang Group of China purchased 285,000 tonnes of shredder scrap at CIF US$ 223 per tonne for February-March shipment from USA. Hyundai INI Steel bought 220,000 tonnes of scrap for shipment in January and later from USA and Russia. The firm purchased 40,000 tonnes of US scrap at C&F US$ 210 for no.1 heavy. The firm apparently purchased Japanese H2 grade scrap at FOB 22,000-22,200 yen last week. Japanese exporters around Tokyo are said to have 150,000-160,000 tonnes of backlog. Asian steel makers are building scrap inventory rapidly.