Import scrap prices in Taiwan have continued to rise over the past week as US suppliers have been offering fewer volumes and having increasing problems with transportation. At the same time, Japanese exporters have been taking their chance to increase prices too.
Currently, offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan are still few, being mainly in the range of $450-455/mt CFR this week, against $445-450/mt CFR last week. Most mills have bought cargoes closer to the upper end, a source stated, at $453/mt CFR and above. One player stated that the lack of containers from the US West Coast disrupts the schedule of shipments, hence lowering the tonnage available for Taiwan.
Meanwhile, offers from Japanese sellers to Taiwan for H1/2 50:50 scrap by bulk have increased from the range of $470-480/mt CFR to $490-500/mt CFR week on week. The rise in prices was announced after the Kanto tender, a source reported, adding that “it makes no sense that the Japanese increased their quotations for Taiwan while their local prices are decreasing.” However, another source stated that the lack of US suppliers, the shortage of containers and higher freights may have caused the price rise. The traditional freight from Japan to Taiwan was normally $20-25/mt, but it is now at around $55/mt, SteelOrbis understands. Having said that, levels of $490s/mt CFR for Japanese scrap are considered to be high by a number of sources. The tradable level for H1/2 50:50 scrap is said to be $470/mt CFR, slightly higher than $465-470/mt CFR last week.
SteelOrbis has also learned that Feng Hsin Steel’s domestic scrap prices for HMS I/II 80:20 grade are currently at TWD 11,600/mt ($420/mt), TWD 200/mt ($7.24/mt) higher than the previous level. The steel mill’s domestic scrap prices stood at TWD 11,400/mt for three weeks before this announcement.
According to market sources, local demand for rebar in Taiwan is better this week as players see that scrap quotations are rising. Domestic rebar prices are still standing at TWD 22,000/mt ($797/mt) ex-works. As Asian countries are still struggling to take control of their numbers of Covid cases, lockdowns are continuing, and no full recovery for steel demand in the region is expected by the market sources surveyed by SteelOrbis, at least in the near future.
$1 = TWD 27.60