On May 4, SteelOrbis reported a small volume ex-US West coast scrap deal for HMS I/II (80:20) at $232-234/mt CFR Taiwan, and various small scrap deals were heard through the week ended May 5 ranging from $230-235/mt CFR Taiwan.
Taiwanese mills have reportedly been heard reducing the list price on finished steel prices and domestic scrap purchase prices for feedstock. Given the market uncertainty, Taiwanese mills have been reluctant to make large commitments for scrap. According to sources, ex-US offers on HMS I/II 80:20 for the week ended May 5 were heard in the range of $238-250/mt CFR Taiwan. The wide offer range, according to sources, was driven by the improved price of ex-US scrap buys by Turkey, positive results in the US domestic scrap market, and market uncertainty in the Chinese market that resulted in price fluctuations throughout the past week.
According to a source, given the continued Chinese effect on the market, declining offer prices for scrap from other short-sea regional sources, and the need to sell cargoes on the West coast, offer prices this week are beginning to narrow by $5/mt on the top of the range and are reportedly at $238-245/mt CFR Taiwan with increased volumes offered. For the last month, US West coast exporters have made limited volumes and offers available to Taiwanese buyers given the wide spread between the expressed bid levels and desired sellers’ price levels.