The downtrend has continued in Taiwan’s import scrap market this week, with prices declining by $25/mt minimum. But after this drop, the market could be close to the bottom, most market sources believe, taking into account the much lower offered volume from all major supplying countries by the end of the week, SteelOrbis has learned.
Deals for ex-US HMS I/II 80:20 in containers have been done at $395/mt CFR and some even at $390/mt CFR south Taiwan, which indicates a $25-30/mt drop from $420/mt CFR last week. “Sellers will be more careful and prices are about to rebound,” one steel producer in Taiwan said, adding that there have been only a few offers lately after a number of bookings earlier in the week.
A deal for 3,000 mt of ex-Japan H1/2 50:50 by bulk was closed at $410/mt CFR in the middle of this week, down by $25/mt compared to last week. The average price level for ex-Japan scrap has been settled at about $407-415/mt CFR this week, but after Thursday most suppliers have stopped offering, seeing transportation issues. Demand for Japanese scrap has been strong this week since a sharp increase in container freight, but recently the Japanese scrap export market has become, “hot. China is also looking to buy. And it is difficult to book bulk vessels,” a source said.