It is reported that Japanese domestic scrap market has experienced correction last week after Tokyo Steel cut H2 scrap purchase prices by JPY 500 per tonne at its Okayama and Takamatsu plants.

However, Japanese scrap exports have still remained strong. It's known that South Korean steel mills such as Hyundai Steel and SeAH Besteel and Daehan Steel have started to purchase Japanese scrap from January 5th 2012.

Industry sources indicated that South Korean steel mills have turned to purchase Japanese scrap due to dropped scrap arrivals and surged scrap prices in the US market.

Currently, South Korean steel mills have been facing the sharply dip in scrap arrivals. The current average scrap arrivals only reached 60% of the normal level.

At the same time, the average prices of the H1 scrap were at USD 410.83 per long tonne in the US market on January 3rd 2012, surged by USD 8.33 per tonne from the third week of December 2011, reflecting the US scrap has stayed in upward trend.

Meanwhile, Japan's H2 scrap export prices to South Korea were at JPY 31,500 to JPY 32,000 per tonne FOB on December 31st 2011, which were JPY 2,000 per tonne in comparison of the US H1 scrap prices.

(Sourced from www.yieh.com)