Prices for import scrap have posted minimal changes since last week in Taiwan as suppliers have not been ready to cut prices further and they are expecting a rebound starting from next week. Trading activity has been hit by the recent aggravation of transportation problems, sources have told SteelOrbis.
The latest deals for ex-US HMS I/II 80:20 in containers were still concluded at $390-395/mt CFR earlier this week, in line with last week's level. But some deals failed to be concluded at the last moment, sources have mentioned, as “the transportation issue has become the main problem. Container freight may go up further,” a local importer said. The number of offers has remained limited this week, preventing prices from declining further, even though some buyers have been bidding below $390/mt CFR. Moreover, by the end of the week some suppliers have started to voice offers at a slightly higher level - at up to $400/mt CFR.
Japanese suppliers have come back to the market with offers for H1/2 50:50 by bulk at $415-420/mt CFR this week, slightly higher than the deals reported earlier. As reported previously, exporters withdrew their offers in the middle of last week. The tradable value has remained at $410/mt CFR Taiwan for this grade, stable compared to the previous deals, but suppliers are not ready to give discounts any more. Weak demand from S. Korea and Vietnam has put pressure on Japanese scrap exporters. But ex-Japan prices are holding firm on expectations of a local demand improvement and amid uncertainties regarding transportation. “Freight is still high and docks’ problems with vessels remain, I don’t think that exporters will drop prices in such a situation,” a trader said.