Import scrap prices have fallen further in Taiwan this week as sentiments have worsened in the whole of Asia after the recent drop in the Turkish market and overall demand has been limited. At the same time, the possibility of supply disruptions from the US, following California’s lockdown, have increased the uncertainty in the market.
Offers for ex-US HMS I/II 80:20 in containers have come to $220-225/mt CFR, while deals have been heard mainly at $220/mt CFR, $8-10/mt below the transactions price level last week, SteelOrbis has learned. And though some slight decline is still possible, this level is already close to cost level, according to Taiwan-based sources.
On the night of Thursday, March 19, California ordered its 40 million residents to stay at home after the number of coronavirus cases in the country exceeded 14,000. Though there have been no reports of disruptions in the working of ports or scrap yards so far, Taiwanese importers are worried about a possible reduction in offered volumes in April. “We need to wait a few days. Collecting scrap may be a problem, so I do not exclude that scrap prices will stabilize or slightly go up,” a major Taiwanese buyer said.
Offers for ex-Japan HMS I/II 50:50 to Taiwan have also declined, by $5-10/mt from last week to $230-240/mt CFR. The offer volume of Japanese scrap is sustainable.