Despite the fall observed in the rest of the global scrap market, import scrap prices in Asia have continued to move up unabated. While market players report that the demand received by Japan from other destinations and from its own local market is supporting prices, they also report that the increases may continue ahead of the Chinese New Year holiday. “Our finished steel prices do not support the current raw material quotations much, but there is nothing to do since we are forced to manage somehow,” a Taiwanese producer said today, January 17. Alternative raw materials such as import billets have also indicated a sharp price rise in Taiwan, with some defining the situation as “crazy”. Billet prices have increased to the range of $585-600/mt CFR Taiwan for ex-Russia and ex-Indonesia material from traders.
Deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were in the range of $405-410/mt CFR this week, increasing from $392-395/mt CFR reported on January 6. Currently, the offer prices for this grade are higher than $410s/mt CFR Taiwan, SteelOrbis has learned.
Moreover, offers for Japanese H1/2 50:50 scrap by bulk to Taiwan were in the range of $420-440/mt CFR this week, increasing from the deals closed at $410/mt in the week ended January 6. “The Kanto tender has resulted in an approximate $30/mt increase for Japanese scrap; hence, we expect deals to be signed in the range of $420-430/mt CFR Taiwan this week,” a source at a Taiwanese mill reported.