As the international scrap market is moving up rapidly following Turkey’s lead, suppliers to Taiwan are increasing their scrap offer price levels to this destination, while they are also taking a step back, citing lower allocation and their expectations of a rise in prices. Most players in Asia are back in the market this week, seeking ex-US and ex-Japan scrap, which also supports sentiment. The upward trend of Taiwan’s import scrap market is expected to continue in the coming week.
Tradeable price levels for ex-US HMS I/II 80:20 scrap in containers to Taiwan are considered to be at $340-345/mt CFR as compared to the range of $330-335/mt CFR recorded at the beginning of last week. “US offers have almost disappeared this week. There is shortage on the US side and sellers are expecting prices to move up,” a Taiwanese source commented.
Moreover, offers for Japanese H1/2 50:50 scrap by bulk to Taiwan have moved up to $365/mt CFR from $345-350/mt CFR in deals last week. “I even heard an offer at $400/mt CFR, but this is too high and I am not sure that it is accurate,” a Taiwanese player commented. Since the Japanese Kanto scrap export tender will be held next week, market players are monitoring the situation. According to one source, “The price in the Kanto tender is expected to increase, since this tightness in the US and the EU segments is causing demand for Japanese scrap to rise.”
