TAIWAN STEEL SCRAP: Price climbs ease ahead of year-end holidays
The price increases for imported containerized ferrous scrap into Taiwan eased in the week to Thursday December 31 amid a year-end holiday lull.
Fastmarkets’ daily price assessment for containerized cargoes of steel scrap, HMS 1&2 (80:20), US material import, cfr main port Taiwan was $440-443 per tonne on Thursday, unchanged day on day but widening upward by $3 per tonne from $440 per tonne a week ago.
Transaction prices in Taiwan increased gradually from the start of the week, with traders selling materials at $442 per tonne cfr Taiwan on Monday before selling cargoes at $443-445 per tonne cfr Taiwan on Tuesday.
Negotiation levels slid on Wednesday, with transactions heard concluded at $440-443 per tonne cfr Taiwan.
“This is the clear sign of the start of a downward trend. The price trend is unclear at the moment, no one know what will happen after the New Year break,” a Taiwanese trader told Fastmarkets on Wednesday.
There was no spot liquidity heard on New Year’s Eve.
Offers were mostly at $445-450 per tonne cfr Taiwan.
Market sentiment remain mixed on the price trend in January, although some sources said the supply situation remains something to look out for.
“Given the Covid-19 cases in the United States, there could be a continued shortage of ferrous scrap supply, especially amid winter,” a second Taiwanese trader told Fastmarkets.
Bids were at $450 per tonne cfr Taiwan for Japanese H1&H2 (50:50) materials, against offers at $457-463 per tonne cfr Taiwan. There were no transactions heard, with many Japanese scrap traders already off for the holidays.
Major Japanese mini-mill Tokyo Steel increased its scrap purchase prices again last weekend, marking its 11th time in 26 days.
It increased its bids by ¥1,000 ($9.68) per tonne to ¥44,500-45,500 per tonne at Tahara steel works in its latest announcement, while increasing bids by ¥2,000 per tonne at Kyushu, Utsunomiya and Takamatsu steel works.
It is now paying ¥43,000 per tonne at Kyushu and Takamatsu steel works and ¥45,000 per tonne at Utsunomiya steel works. It kept its bid price at Okayama steel works unchanged.