The uptrend in Taiwan’s import scrap market has gathered momentum after trading resumed after the long holiday. Suppliers have been very positive, pushing prices up by $40-45/mt over the past week. At the same time, demand is observed as buyers believe prices will increase further.
Prices for ex-US HMS I/II 80:20 scrap in containers have reached $415/mt CFR on Friday, February 19, up by $40-45/mt compared to the offer level a week ago, while prices are $55-60/mt above the level seen in early February. “We have to buy import scrap as prices are going up everywhere. Mills can accept such prices as they are not so high… Prices [from the US] may reach $500/mt CFR by the end of March, I believe,” a source at a mill in Taiwan said.
The rise in ex-Japan H1/2 50:50 scrap by bulk has been slower this week, but this has been mainly connected with the already higher level reported last week. Offers for ex-Japan H1/2 50:50 scrap have been at $435/mt CFR on average late this week, up by $30/mt compared to the level before the holiday. In the past two weeks, prices from Japan have increased by $55/mt. Taking into account current prices for ex-US scrap, the prices from Japan are not too expensive for buyers, as was the case before.
Prices for higher grade scrap have increased even more rapidly, due to higher demand from China and the very bullish view of suppliers in this regard. The price level for ex-Japan shindachi scrap has been reported at $475/mt CFR Taiwan.
Also, one of the reasons for the rapid scrap price increase in Taiwan has been the sharp jump in the freight rates. For instance, in November, the freight rate for ex-US scrap to Taiwan was $300-400 per container, while for March shipments it has reached $1,000 per container, according to insiders.