Over the past week, Taiwanese mills have increased their ex-US scrap prices, but have also sought out cargoes from alternative sources since US origin offers have been limited. Meanwhile, their ex-Japan scrap offer prices have decreased. With South Korean mills maintaining their bids for Japanese scrap and receiving a good response, the increasing trend of Japanese scrap has come to a halt for now. With the opportunities and lower quotations in alternative supplier regions, Taiwanese buyers had reduced their bids for Japanese scrap.
Although there were deals for ex-US HMS I/II 80:20 scrap in containers in Taiwan that were closed below $565-670/mt CFR earlier this week, market players report that the highest levels in deals were in the range of $575-577/mt. This means ex-US HMS I/II 80:20 scrap prices have increased by at least $25-27/mt week on week. “US origin scrap is very expensive and offers to Taiwan are limited because US-based suppliers are more interested in bulk sales or in domestic trading,” the representative of one Taiwanese mill commented.
“We are also buying HMS I/II 80:20 scrap from Hong Kong and Australia to compensate for the lack of US offers. There were deals done below $560/mt CFR from these regions this week,” a producer reported.
Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $600-620/mt CFR, which means a $10-15/mt decrease in offers week on week. SteelOrbis has also learned that there are some deals concluded from Japan below the levels of $600/mt CFR.
Taiwan’s interest in shindachi scrap continues, in the current week deals were done below $650/mt CFR Taiwan as compared to deals recorded last week at $650-685/mt CFR.
Domestic HMS I/II 80:20 scrap prices in Taiwan have moved up by TWD 1,000/mt ($35/mt), as compared to the levels mentioned in SteelOrbis’ report last week, to TWD 14,100/mt ($497/mt) ex-works. In the same period, official domestic rebar prices in Taiwan have increased by TWD 900/mt ($32/mt) to TWD 23,800/mt ($839/mt) ex-works.
$1 = TWD 28.37