Scrap prices have declined again this week as suppliers have been forced to give discounts to sell some tonnages before Taiwanese customers will leave the market in the middle of next week for a week-long holiday.
Deals for ex-US HMS I/II 80:20 by containers were done at $260/mt CFR Taiwan early this week, down about $5/mt compared to last week’s transaction level. Nevertheless, later this week buyers have managed to purchase the same material at $255/mt CFR, SteelOrbis has been informed. Offers have been mostly at around $260/mt CFR, sources said, which is $5-10/mt below last week. “US suppliers had no other choice. Trading will be very slow until February,” a representative of a large Taiwan-based steel mill said.
Japanese scrap exporters have also decreased offers and have attracted customers. Offers for ex-Japan HMS I/II 50:50 by bulk have been at $270-275/mt CFR Taiwan, down $5-10/mt from last week. But in deals buyers have achieved additional discounts, and so transactions have been done at $265-270/mt CFR, according to a number of sources. Suppliers have faced lower purchasing activity in major markets like South Korea and Vietnam, which has added to the situation.
It is expected that prices will move sideways in the coming week due to the Chinese Lunar New Year holidays, but the downtrend will resume as soon as customers come back. “We do not expect sharp decrease [after the holidays]. Prices will move down gradually,” a Taiwanese buyers said.
