Korean Steel Makers Restart Purchase of Japanese Ferrous Scrap

South Korean steel makers restarted purchase of Japanese ferrous scrap after Japanese long holidays in early May. SeAH Steel contracted import of new cutting scrap this week following Hyundai Steel’s contract in last week. SeAH Steel’s contract price was around CFR 43,500 yen per tonne, according to Japanese large dealer.

The contract price was almost as high as Hyundai Steel’s contract price at around FOB 41,000 yen. As for new cutting scrap, the supply and demand balance maintains tight. The demand is steady from Japanese special steel makers, according to Japanese scrap trader.

Meanwhile, some exporters around Tokyo Bay are shifting scrap shipment to regional market due to slow export shipping. Scrap demand from electric furnace steel makers in West Japan is also weakening. Thus heavy scrap is still surplus around Tokyo, said another scrap dealer.