According to sources close to SteelOrbis, HMS I/II 80:20 deals this week to Taiwan achieved a higher price of $263/mt CFR, but the deals did not all converge above the $260/mt level. Several deals from the US West coast were also noted at $255-258/mt CFR.
Offer prices for Japanese H2 bulk scrap were heard at $275-280/mt CFR Taiwan. With a usual gap of $20/mt for H2 bulk versus HMS I/II 80:20 containerized, this translates to $255-260/mt CFR Taiwan on HMS I/II 80:20 containerized. As ex-US HMS I/II 80:20 containerized tends to trade only a few dollars below Japanese containerized options, a source noted the rationale for the ex-US deals below $260/mt CFR Taiwan this week.
If Taiwanese scrap yards succeed in increasing domestic prices, Japanese H2 and US HMS I/II 80:20 may slightly increase, but summer maintenance schedules and market uncertainty, along with questionable success in forthcoming increases in rebar prices has some sources wondering if scrap prices have hit their high point. Additionally, global support from Turkey scrap buys may not be realized as HMS I/II 80:20 bulk continues below $300/mt CFR, and a breach above $300/mt CFR Turkey is not expected through the usually stable to slightly slower month of July.