Import scrap prices in Taiwan have increased by $20-25/mt over the past week, because customers have faced much stronger competition with other Southeast Asian customers as overall supply has been limited due to a lack of containers.
Deals for ex-US HMS I/II 80:20 in containers have been signed at $240/mt CFR Taiwan compared to $215-220/mt CFR a week ago. “Only small volumes were sold. Basically the offer volume is small,” an Asian trader told SteelOrbis. Offers from the US have been coming at $240-245/mt CFR. Apart from the uptrend in the key Turkish market, there has been a deficit of containers in Asia as a lot of them have been stuck in China and cannot leave ports due to the coronavirus. “Many Southeast Asian customers came to US suppliers, looking for scrap in containers. Mainly traders are interested in buying, not mills, but demand increased sharply,” a Taiwan-based importer said. Moreover, the container deficit has pushed up freight rates.
Japanese scrap suppliers have followed the uptrend and increased offers for HMS I/II 50:50 by $20-25/mt to $250-255/mt CFR Taiwan. Deals have been heard at $255/mt CFR late this week.
Most market sources expect a further price increase next week as the current situation in the market will not change soon. At the same time, customers may slow down their buying, waiting for a clearer picture to emerge.
