Hyundai Steel renegotiating scrap import deals

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Oct 2008

It is reported that South Korea's Hyundai Steel is renegotiating scrap import deals as prices of the recyclable metal have fallen so sharply on fears deepening global credit crisis may weaken steel demand. The report cited a source as saying that "We are renegotiating on some cargoes of scrap metals as prices have fallen so rapidly to as low as USD 150 per tonne from above the USD 700 per tonne level this summer when we signed import deals. The source added that "We have already finished renegotiations on some imports and still working on some other cargoes which are already in South Korea."
Prices of scrap, a feedstock used to make steel by mini mills operating electric arc furnaces, have tumbled around 80% in just three months, as steel prices weaken, hit by weakening housing market and spreading global financial crisis. According to the Japan Ferrous Raw Materials Association, average scrap prices in Japan rose to a record above JPY 68,000 per tonne (USD 686) in July but fell back to around JPY 14,000 last week, 

Hyundai Steel purchases around 5 million tonnes of steel scrap per year overseas from such countries as the United States, Russia and Japan.

Source: Steel Guru