As ex-US scrap deals to Taiwan moved up slightly the week ended January 20, SteelOrbis heard of deals closed at $252-253/mt for containerized HMS I/II 80:20. Offers since then moved up to $253-258/mt CFR, which reflects a price increase of $1/mt on the bottom of the range and $5/mt on the top of the range from the previous known deals. According to market sources, Taiwanese mills have sought to close scrap deals prior to the upcoming holiday and have been willing to increase bids on US origin containerized HMS I/II 80:20, resulting in deals at $253-257/mt CFR.
Whether those strong prices can continue despite a downtrend in US East coast export scrap prices (due to recent deals to Turkey that reached $255/mt CFR for bulk HMS I/II 80:20) is unknown. “The market is uncertain once again,” said one source. “What will happen to coking coal, iron ore and scrap after the Chinese New Year? That will be telling for the West coast.
For some context, Taiwan’s CHS announced an increase in domestic and export prices on flat steel products this week, yet it is unknown whether the new finished steel prices will be adopted by the market. Additionally, billet import prices are on a downtrend in the Far East, Taiwanese domestic billet prices have softened, Japanese export scrap prices have moved down, and scrap prices are under downward pressure in the US East coast due to limited exports.
Taiwan’s Feng Hsin Steel, on the other hand, has left its rebar selling price unchanged this week after announcing a 2 percent list price increase on January 16.