Lasting downtrend has started to reverse in Taiwanese scrap market this week with both ex-US and ex-Japan suppliers rising their offers. Japanese suppliers have been more active in price increases after higher than expected Kanto tender results on Thursday. Overall scrap supply volume has been limited.
Offers for ex-US HMS I/II 80:20 in containers increased to $235-240/mt CFR on Friday, while deals during the week have been heard at $230-235/mt CFR Taiwan. This indicates a slight increase compared to contract level of $230/mt CFR last week. “There are not many offers. The pandemic is slowing scrap collection,” a source from Taiwan said.
The price increase has been much bigger from the Japanese suppliers’ side. Offers for Japanese H1/2 50:50 by bulk have been at $255/mt CFR, up by $10-15/mt compared to last week. Importers in Taiwan have been closely watching Japanese exporters’ moves. Offer volumes from Japan have also not been high this week.
As SteelOrbis previously reported, the monthly Kanto Tetsugen scrap export tender in Japan was closed at the average price of JPY 23,574/mt ($220/mt) FAS, which is equivalent to JPY 24,574/mt ($229/mt) on FOB basis, higher by around JPY 2,000/mt ($19/mt) compared to the previous export bookings and above the level expected by market sources. This boosted sentiment in the market and led to higher offers in Taiwanese market as well.
Market sources have different opinions regarding further development in the Taiwanese import scrap market. Some expect gradual further improvement. However, some said that there has been a lack of reasons for prices to increase and they will be relatively stable in the coming week.
