Benchmark scrap prices in Taiwan posted some further losses early this week, but have started to bounce back on Thursday and Friday, reflecting the optimism of major sellers from the US and Japan.
Prices for ex-US HMS I/II 80:20 scrap in containers dropped to $435/mt CFR in a stay deal in the middle of this week, down by $15-20/mt from late last week. Some small-volumes changed hands also at $440/mt CFR this week. However, sentiment has changed by the end of this week and the tradable price level for ex-US HMS I/II 80:20 scrap in containers has reached $440-445/mt CFR on Friday, according to sources. “Starting from Thursday, prices have started to bounce back. Domestic prices in the US increased, while the billet market [in Asia] has also rebounded,” a Taiwan-based importer said.
At the same time, Japanese suppliers have been even more aggressive, increasing their target prices and awaiting for improvement after the Kanto tender on June 9. Select latest offers for ex-Japan H1/2 scrap by bulk have been heard at $505-510/mt CFR in Taiwan, up sharply by $30-35/mt from $475/mt CFR late last week. “Most sellers are staying away as they are preparing for an increase next week,” a source said.