Having posted minimal changes last week, benchmark scrap quotations in Taiwan have moved up slightly this week and a further hike in ex-US prices is expected, taking into consideration the high-priced offers from Japan.
Prices for ex-US HMS I/II 80:20 scrap in containers increased slightly in Taiwan on the lower end to $445/mt CFR early this week from the $440/mt CFR recorded last week, and then moved up further: as of today, June 18, offers are not lower than $450/mt CFR. Market sources told SteelOrbis that the number of offers from the US are on the low side, hence ex-US scrap prices are expected to increase further next week to $470-480/mt CFR Taiwan, also supported by the higher levels voiced from Japan.
Japanese suppliers have voiced offers for H1/2 50:50 scrap by bulk to Taiwan in the range of $510-515/mt CFR versus $510/mt CFR late last week, while the highest offer given to Taiwan was at $520/mt CFR. These numbers were considered to be too expensive by buyers. SteelOrbis observes that, instead of Taiwanese buyers, South Korean mills have preferred to buy some Japanese cargoes but mostly for prime grades. Lower grades are mostly staying in the local Japanese scrap market, where demand is fairly strong.
Scrap demand in Taiwan is not so strong nowadays amid high inventory levels of scrap at Taiwanese mills and also due to the approaching summer season. According to market players, Taiwanese producers’ needs for scrap decrease in summer months on the back of electricity restrictions experienced in the country during this season.