Although import scrap prices have moved up rapidly over the past week, some Taiwanese sources believe that prices, particularly from Japan, are now too high, while trading activity has declined. “One of them should make a move, either US sellers will increase their prices or Japanese sellers will reduce them. The $40/mt difference between ex-US and ex-Japan cargoes is huge,” a source commented.
Deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at around $355-360/mt CFR earlier this week, then they rose to $360/mt CFR. Last week, offers to Taiwan were in the range of $340-345/mt CFR. “The number of offers from the US continues to decline,” a Taiwanese source commented.
Moreover, bookings for Japanese H1/2 50:50 scrap by bulk to Taiwan were closed at $365/mt CFR earlier this week which is in line with the offers received from Japan last week. But towards the end of the current week, deal prices for this grade increased by $5/mt to $370/mt CFR. “The problem is that, after the Japanese Kanto scrap export tender, Japanese scrap sellers increased their offers to $400/mt CFR Taiwan. This is too expensive for us. We shall wait and see for next week,” a source at a Taiwanese mill commented.
Domestic HMS I/II 80:20 scrap prices in Taiwan have been at TWD 10,500/mt ($343/mt) ex-works. Official domestic rebar prices in Taiwan have been at TWD 19,200/mt ($627/mt) ex-works. Local scrap and rebar prices continue to move up in Taiwan.
$1 = TWD 30.61