Despite still restricted demand for scrap and negative sentiments in the steel markets in Asia, ex-US scrap prices in Taiwan have posted an increase this week, amid difficulties in collection and the significant decrease in offer volumes for HMS in containers over the past few weeks. At the same time, Japanese scrap suppliers have moved in the opposite direction and cut prices to push volumes in Taiwan, seeing slower demand elsewhere.
The latest deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were done at $330-335/mt CFR, mainly in the first half of this week, up by $5-10/mt over the past week. But over the past two days offers from the US have dried up again. “Prices in Taiwan are just too low for most suppliers, that is why we see this increase,” a Taiwanese mill said, adding that US sellers may push for a further increase in prices, but taking into account the still slow demand in Asia, it will be not so easy.
Moreover, Taiwanese customers have decided to turn to Japanese scrap after the latest price decline. As a result, a few deals for Japanese H1/2 50:50 scrap by bulk to Taiwan have been done at $345-350/mt CFR, versus offers at $360-365/mt CFR last week. As demand in the local Japanese market and in Southeast Asia is expected to remain weak in the near future, Japanese scrap exporters may remain interested in sales to Taiwan in the coming weeks.