Taiwanese scrap buyers have been trying to finish restocking earlier this week due to the Christmas holidays. This together with shortage of material in the market have led to another $35/mt increase in prices over the week.
Latest deals for ex-US HMS I/II 80:20 scrap in containers in Taiwan have been done at $440/mt CFR, up by $35/mt from last week. Prices have started to surge from Monday, when the price level in negotiations exceeded $420/mt CFR. This has been expected by market participants, taking into account recent gains in Turkey and continued lack of offers from the US. Buyers had no other choice but to accept higher price levels for imported scrap, but sentiment has started to worsen in the middle of the week, when futures in China have dropped.
Offers for ex-Japan H1/2 50:50 scrap by bulk have surged to $465/mt CFR by the end of this week, up by $10/mt week on week. A few deals have been done at around $455/mt CFR (+/- $2/mt) in the middle of the week. The difference between ex-US and ex-Japan prices has narrowed from recent highs, so customers have been interested in purchases. Moreover, “A bid at $455/mt CFR from Taiwan is JPY 44,000/mt [FOB for H2 grade], which is JPY 1,500/mt higher than Hyundai bid last week,” a Japanese trader said.