Prices for import scrap have rebounded in Taiwan this week, while offers have been very limited in the second half of the week as most suppliers believe that the uptrend will gather momentum next week. SteelOrbis has learned from market sources.
Early this week, ex-US HMS I/II 80:20 scrap in containers was sold at $395-400/mt CFR to Taiwan and the tradable level was at $400/mt CFR on Thursday, April 1, before customers left the market due to the holiday. This means that prices from the US have added $5-10/mt compared to $390-395/mt CFR last week. Since Wednesday “we received zero offers from both the US and Japan. Suppliers are preparing for a further increase,” a major importer said.
Offers for ex-Japan H1/2 50:50 by bulk have risen to $440/mt CFR, up by $10/mt from the previous offers earlier in the week and at least $20/mt above the level voiced by suppliers in the middle of last week. As the gap between ex-US and ex-Japan prices has increased to $40/mt compared to the usual $15/mt, Taiwanese buyers have been more interested in purchases of cheaper ex-US scrap. At the same time, Japanese exporters have been bullish, seeing reviving demand in Vietnam and higher bids there. “Vietnamese mills may accept higher prices [for scrap] as there is significant buying coming from the billet market in China,” a source said.