Proposal to amend frequency of South Korea steel scrap import price assessments

Fastmarkets proposes to amend the pricing frequency of its MB-STE-0879 steel scrap H2 Japan origin import, cfr South Korea and MB-STE-0880 steel scrap HMS 1&2 (80:20) deep-sea origin import, cfr South Korea to once a month from the current weekly basis.

March 8, 2024

The proposal follows initial feedback from market participants who are seeing less liquidity in the South Korean scrap import spot market, given that most mills have switched to long-term contracts and demand for imports have slowed amid a sluggish construction sector.

The proposed new specifications are listed below, with the proposed amendment of price frequency in italics:

MB-STE-0879 Steel scrap H2 Japan origin import, cfr South Korea
Quality: Old steel of Japanese origin, sheared or cut to pieces measuring 3-6mm thick and no
longer than 1.2 meters in any direction
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr South Korea main port
Timing: Up to 4 weeks
Unit: Japanese yen/tonne
Payment terms: Letter of credit on sight
Publication: Monthly. First Friday of the month, 5-6pm Singapore time.

MB-STE-0880 Steel scrap HMS 1&2 (80:20) deep-sea origin import, cfr South Korea
Quality: HMS 1&2 (80:20 mix) compliant to ISRI specifications 200 – 206.
Quantity: Minimum 20,000 tonnes (bulk)
Location: cfr South Korea main port
Timing: Up to 3 months
Unit: USD/tonne
Payment terms: Letter of credit on sight
Publication: Monthly. First Friday of the month, 5-6pm Singapore time.

These prices are a part of the Fastmarkets scrap package.

The consultation period for this proposed amendment starts from Friday March 8 and will end one month from the date of this pricing notice, on Monday April 8. The amendment will then take place, subject to market feedback, on Wednesday April 10.

All historical data relating to the assessment prior to the amendment will remain available in the pricing section of the Fastmarkets website.

To provide feedback on the South Korean steel scrap prices, or if you would like to provide price information by becoming a data submitter to this price, please contact Carman Chew by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Carman Chew, re: South Korean steel scrap price assessment.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.