South Korean steel makers shift to US new cutting scrap import instead of Japanese scrap when Japanese scrap supply from plants in automobile industry due to the major earthquake damage. A Japanese trading firm source said scrap buyers couldn’t secure large volume of scrap both for domestic buyers and export under tight supply in Japan. The source expects limited Japanese scrap supply would focus on domestic electric furnace steel makers.US scrap export price is around CFR US$ 540-550 per tonne for new cutting scrap for Far East area, according to Japanese source. The buyers apparently include Hyundai Steel, Dongbu Steel and SeAH Besteel of South Korea. US scrap price increases for new cutting scrap due to firm domestic and export demand while the heavy scrap price is dull when the export is slow for Turkey, Taiwan and other East Asian countries. Japanese scrap market price is increases for new cutting grade when domestic electric furnace steel makers and foundries increase the purchase price under tight supply. A dealer source said the price is expected to increase when offshore market increases. Ferrous scrap market price is flat at 28,000 yen per tonne for H2 grade, around 29,800 yen for H1 and around 31,500 yen for HS at the dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers pay 33,500-35,000 yen for H2 grade scrap, which is 500 yen lower than previous week level. The price is expected to support ted by higher export price, which is FOB 35,000-36,000 yen for H2 grade for East Asia. Ferrous scrap market price is flat at around 28,000 yen per tonne at the dealers’ purchase price around Osaka. Local electric furnace steel makers pay 36,500-37,500 yen for H2 grade scrap. Some integrated steel makers increased the H2 grade purchase price by 1,000 yen for ocean transport under tight supply of high grade scrap. Local electric furnace steel makers also increase the purchase price for high grade scrap.
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