ASIA STEEL SCRAP DIGEST: Lower-cost Russian scrap emerges in China market

Lower-priced Russian-origin steel scrap offers to China were heard on Friday August 13, but prices were still not low enough to entice Chinese buyers to enter the market.

  • Russian-origin scrap at lower prices still unattractive to Chinese buyers
  • Chinese domestic scrap prices continue descent
  • South Korea import scrap market quiet during Japan holiday

China import
Offers for 2,000 tonnes of Russian-origin plate and structural (P&S), which is generally of equivalent quality to heavy scrap (HS), were heard at $530 per tonne cfr China, sources told Fastmarkets on Friday August 13.

Recent sales for bulk Russian scrap were heard at $495 per tonne cfr South Korea for 90,000 tonnes of A3 material in early August, but with Korean mills hesitant to pay above $480 per tonne cfr for bulk scrap on Friday, added to lower steel prices in the Russian market, cheaper scrap is now available from the country.

Offers from Japan were still in the range of $585-590 per tonne cfr China for HS, but volumes were limited with Japanese suppliers away from the market for the Obon holidays August 12-16.

“This price definitely gives Russian cargo advantages over [cargoes from] markets such as Japan and South Korea,” a mill source based in Hebei province told Fastmarkets. “But it is still higher than our domestic scrap buy price. Mills in the Tangshan region which normally pay higher for scrap might be able to accept the price.”

The highest bids for imported steel scrap into China were heard at $510-515 per tonne cfr northern China on Friday.

Fastmarkets’ daily price assessment for steel scrap, heavy recycled steel materials, cfr China, which takes into account prices at ports in eastern China, was $520-530 per tonne on Friday, unchanged from a day earlier.

China local
Demand for domestic steel scrap from Chinese mills remained low this week amid reduced production levels.

“Both demand and supply [of domestic scrap] are weak now. Demand for the material from mills is dampened by production curbs and restrictions on electricity usages,” a Chinese scrap industry analyst based in Beijing told Fastmarkets. “Besides, iron ore prices decreased sharply recently, which makes molten iron more attractive in term of steel production costs, so some steel mills lowered their scrap intake volume.”

“On the supply side, cross-regional transportation for domestic scrap in some cities was restricted in the past week due to the measures taken to control the Covid-19 epidemic,” the industry analyst added.

Fastmarkets’ weekly price assessment for steel scrap heavy scrap, domestic, delivered mill China, was 3,720-3,760 yuan ($574-580) per tonne on August 13, down by 50 yuan from 3,770-3,810 yuan on August 6.

Disregarding VAT, that puts the China domestic scrap price at $500-505 per tonne, $25-30 below the lowest import offer price in the market at $530 per tonne cfr.

South Korea
Scrap trading activity has cooled off in the South Korea import market over the last week amid the absence of Japanese sellers, as well as due to large stock levels for lower-grade material, sources said.

Shredded scrap in bulk from Japan was heard sold at ¥60,000 ($543) per tonne cfr Korea this week, working out at ¥56,000 per tonne fob Japan. However, many other deals did not work out due to gaps between Japanese suppliers and buyers.

“We tried offering HS to South Korea, but the price from the buyer was not workable for the supplier,” a Japanese trading source said. He added that Shindachi was even more difficult to supply, with sellers asking around ¥65,500 per tonne fob, but with no guarantee of even a September shipment, given the expected reduced generation at automakers during the Obon holiday.

On the Korean deep-sea market, activity was minimal, with market participants instead watching the moves of Vietnam. “If Vietnam has paid $495 per tonne cfr for deep sea HMS 1&2 (80:20), then South Korean buyers must be at $480 per tonne cfr because the costs of freight, financing and claims selling to the Korean market are much lower than to Vietnam,” a Taiwanese trader said.

A South Korean steelmaker source said that $480 per tonne cfr may be an acceptable price for deep-sea HMS 1&2 (80:20), but added that his mill was “out of the market” on Friday.

Fastmarkets’ weekly price assessment for steel scrap, HMS 1&2 (80:20), deep-sea origin, import, cfr South Korea was $480-490 per tonne cfr on Friday, down $5-10 from $490-495 per tonne one week before.

(Due to a typographical error, the offers for HS from Japan in the China import section were stated as $685-690 per tonne cfr China when this report was originally published. This has been corrected to $585-590 per tonne.)

What to read next
The global steel industry’s move to decarbonize and China’s penchant for lower-grade ores in recent years have uncovered challenges for high-grade iron ore to live out its value in both the blast furnace-based steelmaking route and the direct-reduction iron process, delegates told Fastmarkets during the Singapore International Ferrous Week (SIFW), which takes place from May 26-30.
Discover how President Trump's tariffs impact the US fluff pulp export market, specifically targeting the EU and China.
The global iron ore market, a pivotal component of the steelmaking industry, has historically been driven by simple supply and demand dynamics. However, steel trade tariffs, trade wars and a growing trend toward resource nationalism are reshaping this once-basic industrial staple. These forces, alongside rising environmental regulations and shifting trade patterns, are profoundly influencing iron ore pricing, production and consumption trends. 
The playing field for global iron ore brands could be poised to be leveled, given a recent announcement on lower iron content in a key mainstream Australian direct shipping ore, iron ore market participants told Fastmarkets, adding that the development could narrow the price disparities between major Australian mid-grade iron ore brands.
The graphite industry in 2025 faces major challenges, including trade wars, high US tariffs on synthetic graphite and policy changes affecting EV manufacturing and tax credits. Low natural graphite prices, oversupply and slow EV growth make diversifying supply chains essential for market stability.
At Fastmarkets’ International Iron Ore & Green Steel Summit 2025, we expect topics such as iron ore pricing trends, green steel developments and growing demand for high-grade pellets to emerge. The event will address decarbonization, Europe’s green steel growth and shifts in scrap and pellet markets driven by supply and cost changes.