Scrap prices in the domestic market of Korea is likely to be low in the month of July. Falling demand and consistent supply is expected in the summer by traders and buyers. The major mini-mills of Korea have recently announced to reduce their purchase price for scrap. The Dongbu Steel is going to reduce its domestic buying prices by Won5,000/MT ($4.4/MT) for grade except for Shindachi, by Wednesday, July 03, 2013. Whereas, the Dongkuk Steel Mill planned to decrease their prices by Won10,000/MT for all grades from July, 12, 2013.
Hyundai Steel, largest mill of Korea, has booked Japanese H2 grade scrap at Yen 29,500/MT ($301/MT) FOB in week ended June, 29, 2013, which is same as its preceding week. They purchased 20,000 MT scrap of other grade material for the month of August, 2013.
The leading mini-mill of Japan, Tokyo Steel Manufacturing has reduced its scrap prices at its Tahara works from Wednesday, July 03, 2013, by Yen 500/MT ($5/MT), while prices at other works were kept the same. Owing to which the H2 grade prices at Tahara works were at Yen 31,000/MT ($311/MT) and prices at Utsunomiya in Northern Kanto remains same at Yen 32,000/MT.
The Korean government has recently guided the steelmakers for the electricity consumption and its savings. They have been asked to save electricity in the month of August, 2013, from 5-30th. Therefore the local mini-mills are planning to conclude with their maintenance programme in the next month.