Taiwanese mills’ import scrap purchase prices have indicated significant rises over the past week, as the impact of Russia’s invasion of Ukraine continues to be felt. According to a SteelOrbis contact, pig iron offer prices from India to Taiwan have reached $845/mt CFR, while last week the price was at $700/mt CFR. The tradable billet prices in the country are now at $800/mt CFR. “Prices continue to move up at a fast pace, though we think Russia cannot afford to continue this war for long, it would be safe to say that the impact on prices may be felt for months to come,” a source stated.
Although there were deals for ex-US HMS I/II 80:20 scrap in containers in Taiwan that were closed below $550/mt CFR this week, as of today, March 11, market players think the workable levels for this grade are at $550/mt and above. This means ex-US HMS I/II 80:20 scrap prices have increased by at least $50/mt week on week.
Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $615-630/mt CFR, which means a $25-40/mt increase in offers week on week, even higher as compared to the deals concluded at $540/mt CFR in the middle of last week. “Not long ago we were buying shindachi in this range,” an official at one mill stated.
As SteelOrbis reported previously, trying to compensate for the increases in pig iron quotations, Taiwanese mills are buying Japanese shindachi scrap. SteelOrbis has learned that Japanese shindachi scrap offers are now in the range of $650-685/mt CFR Taiwan, compared to deals recorded last week at $610-620/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 13,100/mt ($461/mt) ex-works. In the same period, official domestic rebar prices in Taiwan have increased by TWD 700/mt ($25/mt) to TWD 22,400/mt ($788/mt) ex-works. The uptrend in the local scrap and rebar markets is expected to continue in the coming week.
$1 = TWD 28.41
