Taiwanese scrap importers have been interested in purchases this week, which has supported prices. Moreover, offer volumes from the US have stayed limited. Some customers have decided to book more tonnages from Japan, taking into account the lower price difference with ex-US scrap prices late this week.
Ex-US HMS I/II 80:20 scrap in containers was sold to Taiwan at $220/mt CFR on Monday this week, while the average transaction level was at $215/mt CFR last week. And prices have continued going up this week with the highest contract in the market signed at $227/mt CFR at the end of the week, SteelOrbis has learned. Offer prices from the US have reached $230/mt CFR Taiwan. “Supply from the US is still a problem. Recently there were no offers,” a buyer said. As a result, customers have been considering purchases from alternative sources. For example, HMS I/II 80:20 scrap in containers from Hong Kong has been offered at $220/mt CFR and below.
There has been demand for ex-Japan H1/2 50:50 scrap with a number of deals heard at slightly lower than $230/mt CFR to $232/mt CFR Taiwan late this week. Comparing the highest deal price for ex-US HMS I/II 80:20 with ex-Japan H1/2 50:50, the price difference will be just $5/mt. while usually Japanese scrap is $10/mt more expensive. Offer prices for H1/2 50:50 have been at $235/mt CFR Taiwan late this week. “Supply from Japan is okay for H1/2 50:50, HS, even shredded, but there is almost no shindachi. Supply has fallen by more than 70 percent,” a customer from Taiwan said.
