Import scrap prices in the Taiwanese market have posted further increases this week, boosted by high freight costs and continuing transportation issues, and also by stronger billet prices in the region, SteelOrbis has learned.
The price level for ex-US HMS I/II 80:20 scrap in containers has increased by $10-15/mt since last week to $410-415/mt CFR. The deals in this range were signed mainly in the first half of this week, while demand has cooled down today, Friday, April 9. “Both bulk and container freights are very expensive and this is still the major issue here,” a local source said. Most Taiwanese buyers have been focused on scrap purchases and negotiations with US exporters as the price gap with ex-Japan prices has increased to $50/mt.
Offers for ex-Japan H1/2 50:50 by bulk have increased again, by $20-25/mt this week to $460-465/mt CFR. Last week, the difference between the ex-US container scrap price level and ex-Japan bulk scrap prices was $40/mt and it has reached $50/mt this week, while usually Japanese scrap is only $15/mt more expensive. “Japanese suppliers don’t want to sell here at lower prices, having better options [like Vietnam],” a Taiwanese source said.
Sharp rises in billet prices in China and in the Asian region this week have supported import scrap prices and there is still some space for prices from the US to go up, according to market participants. “Billet prices went up too much. The increase should calm down,” a Taiwanese mill said. “Prices [for ex-US scrap] may go up more in Taiwan to $430/mt CFR in the near future,” another source said.