Prices for ex-US scrap have shown another sharp increase in Taiwan this week as customers have been interested in purchases, not having many options. Nevertheless, by the end of the week, sentiment has started to change and some market sources believe that the uptrend will not continue, taking into account higher offer volumes from the US.
The price level for ex-US HMS I/II 80:20 scrap in containers in Taiwan has reached $430-435/mt CFR late this week, up by $20/mt from last week. The latest deals were done at $430/mt CFR earlier this week, and after that most offers have been increased to $435/mt CFR, SteelOrbis has learned. “Everyone was buying from the US, so prices increased. Japanese scrap is too expensive,” a Taiwan-based steelmaker said.
Offers for ex-Japan H1/2 50:50 by bulk have remained at not below $460/mt CFR, almost the same as last week. Demand has been very limited, as in such conditions the highest possible price for Taiwanese buyers has been at $445/mt CFR for Japanese material. As a result, no deals have been reported over the past week.
Domestic scrap price increases in Taiwan and higher billet prices have supported the uptrend in Taiwan this week, but sentiment has started to change recently. “Today there are a lot of offers from the US. So, next week prices will hardly go up further,” a source said. In addition, by the end of April market sources expect some easing of transportation issues and, as a result, lower freight rates.