The uptrend in the Taiwanese scrap market seen over the past two weeks has started to reverse lately as higher offer volumes, especially from Japan, have put pressure on prices.
Offers for HMS I/II 80:20 in containers were heard at $240/mt CFR early this week, down $5-10/mt week on week. Deals were signed at $238/mt CFR and then at $235/mt CFR late this week, according to sources. The contract prices are $5-8/mt below the level in late February. Trading activity has improved compared to the previous week and has been at a “normal level,” a few major importers have confirmed.
The final deal prices for ex-Japan HMS I/II 50:50 by bulk have been at $245-247/mt CFR Taiwan this week, down $8-10/mt compared to deals last week. “Japanese suppliers are really grabbing the market share as the domestic market is bad,” a Taiwan-based source said. Taking into account that the inland transportation costs for scrap in containers and bulk have a $10/mt difference in Taiwan, “in fact, prices from Japan and the US are the same,” a sources told SteelOrbis.
It is expected that import scrap prices in Taiwan will keep going down in the near future due to plenty cargoes available from Japan and overall weak demand from other Asian customers, South Korea in particular.
