After following the uptrend observed in the international scrap market this week, Taiwanese buyers are considering to take a break and started showing resistance to the rising price levels. Even the increase recorded in Japanese Kanto export scrap tender had little impact on the market. A Taiwanese source reported that despite the rise in Kanto tender, the offers they receive from Japan have remained somewhat stable. “Finished steel market is still performing weak, I do not expect scrap quotations to increase sharply from now on,” the source added.
Offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan are in the range of $435-440/mt CFR, increased from the $420/mt CFR level recorded at the end of last week. SteelOrbis understands that Taiwanese buyers are unwilling to pay more than $430/mt CFR this week, hence some deals were done at this level.
Offers for Japanese H1/2 50:50 scrap by bulk to Taiwan are currently at $445-450/mt CFR, slightly higher as compared to $435-440/mt CFR from last week. A Taiwanese producer has concluded a deal for this grade at $443/mt CFR.
Domestic HMS I/II 80:20 scrap prices in Taiwan have moved up by TWD 300/mt or $7/mt week on week to TWD 11,900/mt ($386/mt) ex-works. The official domestic rebar prices in Taiwan have also increased by TWD 300/mt or $6/mt to TWD 20,300/mt ($659/mt) ex-works. Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
$1 = TWD 30.82