Imported scrap prices in Taiwan have moved down recently in new deals for ex-US material. Buyers have been cautious, seeing weaker sentiment in China and are still asking for discounts. At the same time, Japanese suppliers have attempted to increase prices after the latest Kanto export tender closed at a higher-than-expected level last week.
The latest deals for ex-US HMS I/II 80:20 in containers have been done at $265/mt CFR, down from indications at $265-270/mt CFR in the middle of last week and $5/mt lower than contracts at $270/mt CFR before the holidays in late September. But “there is not much supply. Not many exporters can sell at $265/mt CFR, but we are trying [to buy],” a local importer said.
Offers for ex-Japan H1/2 50:50 scrap by bulk to Taiwan have increased from around $285/mt CFR last week to $290-303/mt CFR after the Kanto Tetsugen export tender was closed at the higher-than-expected level (JPY 29,407/mt or $277.45/mt on FOB basis). But the highest possible price that buyers can accept is $285/mt CFR. “It is too expensive, the gap [between ex-US and ex-Japan scrap in Taiwan] is more than $20/mt,” a source said. Usually the difference is $15/mt.