TAIWAN STEEL SCRAP: Buyers unsuccessful in halting price gains
Taiwanese buyers bid lower for imported containerized ferrous scrap over the past week, but were largely unsuccessful in halting price gains.
Fastmarkets’ daily price assessment for containerized cargoes of steel scrap, HMS 1&2 (80:20), US material import, cfr main port Taiwan was $243-245 per tonne on Friday July 24, unchanged from a day earlier but up by $5 per tonne from $238-240 per tonne cfr Taiwan a week earlier.
Spot prices for containerized cargoes of heavy melting scrap 1&2 (80:20) from the United States West Coast increased throughout the week even though buyers attempted to push down prices.
There were transactions done at $242 per tonne and $243 per tonne cfr Taiwan by Wednesday. Buyers then tried to reduce bids, hoping that prices had peaked.
But transactions were concluded at even higher levels on Thursday at $245 per tonne cfr Taiwan.
While some larger buyers did not purchase at levels as high as that, they were unable to prevent the price increases despite keeping their bids low.
“There’s no way anyone can buy cargoes at lower prices next week, it is likely that the price increases will continue,” a Taiwanese trader told Fastmarkets on Thursday.
Offers were at $245 per tonne cfr Taiwan for containerized HMS 1&2 (80:20) materials from the US. Materials from South and Central America were offered at $230-240 per tonne cfr Taiwan.
Market sources in Taiwan also said they expect domestic prices to track the increase in import prices, especially with the current NT$7,200 ($245) per tonne domestic price lagging behind that in the import market.
Containerized shredded materials from the US West Coast was sold at $260 per tonne cfr Taiwan.
A H1&H2 (50:50) cargo was sold at $257 per tonne cfr Taiwan on Tuesday, while a 3,000-tonne Japanese H1&H2 (50:50) cargo was sold at $255 per tonne cfr Taiwan on Wednesday.
Offers were at $255-260 per tonne cfr Taiwan.