Import scrap prices have increased in Taiwan this week, in line with market participants’ expectations. The higher Kanto Tetsugen tender results in Japan and the bullish mood in the US scrap market have contributed to a hike in prices.
Deals for ex-US HMS I/II 80:20 in containers have been closed at $280-283/mt CFR Taiwan at the end of this week, $10/mt higher than last week. “We have restarted to receive offers just late this week,” one local source in Taiwan said. Early this week, suppliers were mainly out of the market, preparing for a further hike, seeing an increase in the local market in the US. Sources reported that a contract was done at $280/mt CFR on Thursday, while the tradable value has increased closer to $285/mt CFR on Friday. Overall trading has been limited as a number of customers have been resisting a further increase. “There were very few offers this week from the US. Buyers have to pay this price, if they need to buy,” a source said.
Japanese suppliers have also increased offers for H1/2 50:50 further - by around $10/mt to $305/mt CFR and above. Some deals have been done at $295-300/mt CFR this week. But demand in general has been weak. Customers prefer to buy cheaper ex-US scrap, but some of them considered purchasing from Japan, seeing limited supply in the market. “There are better options for Japanese exporters where to sell, like Vietnam. We will not fight,” a Taiwanese buyer said.