The bullish global scrap market and the continued shortage of availability from the US have continued to push up import scrap prices in Taiwan this week. Ex-US prices have added $50/mt since last week, while ex-Japan prices have been increasing even more aggressively, by $60-65/mt.
This week, deals for ex-US HMS I/II 80:20 scrap in containers in Taiwan have been reported at $380/mt CFR versus $330/mt CFR last week, SteelOrbis has learned. But the tonnage in each contract has been very small, around 500 mt, as “very little quantity was available,” a mill from Taiwan said. The price surge has been too rapid recently and market sources are worrying about a possible steel production reduction in the future, if such a situation with the shortage in the scrap market persists.
Offers for ex-Japan H1/2 50:50 scrap by bulk have surged to $425-430/mt CFR from $365/mt CFR last week. No new deals have been reported as “this is too expensive for everyone. The gap with US scrap is huge - almost $50/mt [usually it is $15/mt],” a source said. The higher offers from Japan have started to come by the end of the week after the Kanto Tetsugen tender, where the monthly price increase was $78/mt, as SteelOrbis reported on December 10.