In the first week of 2022, Taiwanese steel mills have bought some ex-US cargoes after the decrease seen in prices, since Japanese sellers mostly refused to cut their prices further.
Deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan have been at $430-435/mt CFR, down by $10-15/mt from the tradable level last week. “There were offers at the beginning of the week, but then the number declined as congestion at US ports and a lack of containers continue to be observed,” a source reported. As container availability is low and is causing delays in shipments to Asia, US sellers are more focused on South America for scrap sales, SteelOrbis understands.
Offers from Japan to Taiwan for H1/2 50:50 scrap by bulk have moved to a narrower range from $475-490/mt CFR to $480-485/mt CFR. “There is a Kanto tender next week on Wednesday,” a source commented, adding, “Hence, Japanese scrap sellers are unwilling to offer lower prices for export. They want to see the result of the tender first. We can say they are conservative right now.” Meanwhile, another source stated that a cargo from Japan for H1/2 50:50 scrap was bought at $465/mt CFR Taiwan this week, stating, “I think this was a stressed cargo and the price was special for this case. The general range of offers is at $480-485/mt CFR.”
Domestic HMS I/II 80:20 scrap prices in Taiwan have moved sideways week on week at TWD 11,500/mt ($415/mt), while official domestic rebar prices are still at TWD 20,900/mt ($755/mt) ex-works. However, some producers are giving lower prices to the local rebar market and there are some deals closed at around TWD 20,200/mt ($730/mt) ex-works. “The domestic rebar market is very quiet. Buyers are in no rush to buy as they believe prices have more room to decrease,” a source reported.
$1 = TWD 27.69