The reversal of the global scrap price trend this week has impacted the Taiwanese market, where prices have lost $15/mt. But the outlook for the market trend in the near future is unclear as, though a pessimistic mood prevails, China is still buying import scrap and demand for steel is expected to be firm.
The latest deal price level for ex-US HMS I/II 80:20 in containers has been reported at $420/mt CFR, down by $15/mt compared to late last week. Some negotiations have already started at $415-420/mt CFR on Friday. The offer volumes to Taiwan have been higher than in the second half of February, and customers have been insisting on further discounts.
There has been a rumour in the market that one bulk scrap deal from the US for HMS I/II 80:20 was to Vietnam at $445/mt CFR, which indicated a sharp drop from the previous level of $475/mt CFR, but this has not been confirmed by the time of publication. If the market reaches this level soon, prices for ex-US scrap in Taiwan have an additional $10-15/mt to go down, according to sources.
Offers for ex-Japan H1/2 50:50 by bulk have also declined from $450-455/mt CFR to $435/mt CFR this week. “This is a tradable level now, but demand is limited as prices may decrease further next week,” a local source said.