Scrap suppliers from Japan and US have continued to increase prices in the Asian market and have managed to fix their increased prices in fresh deals to Taiwan and Vietnam. Japanese suppliers have been increasing their offers more aggressively.
Japanese scrap prices rise faster in Taiwan than ex-US prices
Prices for ex-US HMS I/II 80:20 by containers have added about $5-8/mt over the past week in Taiwan, with deals closing at $252-255/mt CFR. Offers have risen to $255-260/mt CFR.
At the same time, Japanese suppliers have increased offers for H1/2 50:50 scrap by bulk to $275-280/mt CFR, up by $10/mt from last week. “Suppliers are crazily bullish, but manage to sell,” a source from Taiwan said. A price level in a contract increased by $7-9/mt to $265/mt CFR in the first half of the week, but then the tradable value has increased to $270-275/mt CFR. “It is impossible to find anything below $270/mt CFR,” a source added.
Market sources are mostly positive for developments in the market in the near future, expecting further rebar and billet price increases, which will support demand for scrap.
Vietnam resumes ex-US deep sea bookings, fewer sales from Japan
Japanese H2 scrap offers have increased significantly this week to $280-285/mt CFR. Late last week, the tradable value was at $265-270/mt CFR for the same grade. “Vietnam is rather quiet, but offer prices are higher,” a source said. This week one deal for H2 scrap has been registered at $275/mt CFR Vietnam, but most suppliers have been reluctant to sell at such a price level, expecting for further increase.
As a result, demand for ex-US deep sea scrap bookings has increased. According to sources, a contract has been signed at $295/mt CFR for HMS I/II 80:20 and at $297/mt CFR for shredded. The total tonnage was about 30,000 mt. “The gap between Japanese and US scrap is lower now,” a trader explained.