South Korea’s domestic scrap prices were heard to be rangebound week over week to Jan. 14 amid weak downstream domestic demand.

The price of H2-equivalent Light A grade scrap in South Korea was heard rangebound week over week at Won 390,000/mt ($265/mt) on Jan. 14, according to a trader source.

Platts, part of S&P Global Energy, assessed the weekly H2 ferrous scrap price up Yen 1,250/mt week over week at Yen 44,800/mt ($282/mt) FOB Tokyo Bay on Jan. 14.

Heavy A scrap price was similarly heard rangebound week over week at Won 400,000/mt ($285/mt) Jan. 14.

According to a South Korea-based trader, most South Korean mills may continue to stay away from the import market amid a wide spread between imported and domestic scrap prices.

“The spread between imported [H2 scrap] and domestic [light A scrap] is around $70-$80/mt, so South Korean mills could not touch import [scrap]… Some specialty mills may do so, but the grade will be of a higher grade and with very limited volume,” the trader said.

Downstream, amid ongoing weak domestic demand, some South Korean mills continue to look toward rebar export opportunities, according to an Indonesia-based mill source.

“Mills are seeking additional export orders as this is the only way to achieve roll margins when selling rebar,” said an Indonesia-based mill source. “Domestic demand in South Korea remains very weak, and local prices are insufficient to cover roll margins. The EAF (Electric Arc Furnace) operating rate is still [around] 49%.”

Thailand’s domestic scrap prices

Thailand’s domestic scrap prices remained stable week over week, reflecting cautious sentiment ahead of the upcoming February elections. Domestic HMS 1/2 80:20 bid prices in Thailand were heard stable at Baht 9.50-9.80/kg ($302-312/mt), delivered to Rayong/ Chonburi mills, excluding value-added tax, on Jan. 13.

According to a Thailand-based trader, market direction for scrap in the near term remains unclear at the moment, ahead of elections, and further monitoring would be required.