Following the sharp price fall observed in ex-US scrap offers to Taiwan at the end of last week, the number of offers from the US has declined sharply. According to one source, “They are monitoring China and see that finished steel and coal prices are recovering, and hence they think quotations will increase next week.” Meanwhile, Japanese scrap offers have remained stable, with offered tonnages higher than usual in the absence of alternative markets. However, there is little interest in Japanese H2 in Taiwan.
Offer prices for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at $325/mt CFR until the middle of the week. However, towards the end of the week, they have almost disappeared. SteelOrbis hears that ex-Australian scrap offers are also at around $325/mt CFR. Taiwanese sources believe that the positive impact of China in the region will be temporary and short-lived.
Taiwanese sources state that offers for Japanese H1/2 50:50 scrap by bulk to Taiwan are still at around $360-365/mt CFR, with a mere $5/mt increase observed since the beginning of the current week. “Nobody is buying Japanese scrap, not us, not South Korea or Vietnam. That is why they are offering higher tonnages than usual, 5,000 mt per cargo. This rarely happens,” a source commented. Also, despite offers being in the range of $360-365/mt CFR for Japanese scrap, workable levels are considered to be at around $345/mt CFR.
