While scrap supply has remained limited, Taiwanese customers have accepted higher prices for ex-US and ex-Japan scrap, saying that prices have fallen too much and the current increase was to be expected. Moreover, importers expect a further gradual price improvement next week.
Prices for ex-US HMS I/II 80:20 scrap in containers have been moving up step by step this week. Early this week, deals were signed at $210/mt CFR, but by Friday contracts have been heard at $215/mt CFR and even slightly above. “I would say that the current price stands at $215/mt CFR. Supply is very short. The previous $200/mt CFR was a breakeven point for suppliers,” one of the major Taiwanese customers said. As a result, the SteelOrbis reference price for ex-US scrap to Taiwan has increased by $15-20/mt over the past week to $215/mt CFR.
Demand for ex-Japan scrap has been strong in Taiwan this week. The latest deals for Japanese H1/2 50:50 have been signed at $225-230/mt CFR Taiwan and shredded scrap has been traded at $245-250/mt CFR. As SteelOrbis reported earlier, the previous transaction for ex-Japan H1/2 50:50 was at $220/mt CFR early this week and at $210/mt CFR last week, so prices in deals have increased by $15-20/mt over the week. “Taiwan is aggressively buying now and for Japanese suppliers sales [prices are] much higher than in South Korea,” a trader said.
Most sources believe that suppliers will increase prices for Taiwan by at least $5-10/mt next week due to still limited supply and taking into account that prices in Turkey have surged up much faster.
