Prices for imported scrap have moved up further by $10-15/mt this week in Taiwan and customers have had to accept this increase, having no other option. Bullish sentiment in Turkey and higher freight rates have provided support for the rising trend.
The latest price level for ex-US HMS I/II 80:20 in containers is at $425-430/mt CFR Taiwan, up from $415/mt CFR late last week. “Even though finished steel sales were not so strong, there were a number of bookings at $425/mt CFR and the week closed at $425-430/mt CFR. Scrap is driving the market,” a steel mill from Taiwan said. “Taiwan needs to buy scrap, so we have no choice but to accept higher prices. Now [suppliers from] the US is asking for $435/mt CFR and higher,” another importer told SteelOrbis.
Japanese exporters have also managed to increase prices and have confirmed them in fresh bookings. Early this week, ex-Japan deals were at $435/mt CFR, at the level offered late last week, but by the end of this week they have been reported at $440/mt CFR and slightly above. “Even $450/mt CFR is reasonable for Taiwanese buyers in the current market,” a source said. The offer price range from Japan has been pretty wide recently - at $435-465/mt CFR.
The price level for higher grade scrap from Japan has also moved up, supported by persisting demand from China. At the moment, Taiwanese mills have been receiving offers for ex-Japan shindachi at $485/mt CFR minimum, up by $10/mt over the past week.