TAIWAN STEEL SCRAP: Spot prices rebound on limited supply from US, Japan

The key containerized ferrous scrap import market of Taiwan continued to witness price gains this week amid tight supply of United States- and Japan-origin materials, sources told Fastmarkets.

Fastmarkets’ daily price assessment for containerized steel scrap, HMS 1&2 (80:20), United States material import, cfr main port Taiwan was $400-405 per tonne on Thursday April 1, unchanged from Wednesday and up by $5 per tonne from $395-400 per tonne on March 26.

Buyers increased their bids to $400 per tonne cfr Taiwan by Tuesday, against offers at $405-410 per tonne cfr Taiwan.

Offers disappeared by Thursday on increasingly bullish sentiment in the spot market, with market sources expecting offers to be raised in the near term.

“Many suppliers in the United States are hesitant to offer materials because they feel that prices will increase in the near term,” a key trader in Taiwan told Fastmarkets.

A major domestic steel mill had raised its offers for domestic rebar by NT$200 ($7) per tonne, but kept their domestic scrap purchase price stable.

“Product prices are increasing not just in Taiwan, but also in Asia. For example, billet prices have been increasing, so sellers are confident that their buyers have to follow their offers higher,” a second Taiwanese trader told Fastmarkets.

US President Joe Biden’s $2 trillion infrastructure plan has also supported sentiment among sellers in the US, who are expecting domestic scrap prices to see support in light of stronger demand for steel.

Buyers who were not urgently looking for cargoes or attempting to hold out against rising prices were bidding at $390-400 per tonne cfr Taiwan.

Offers for South and Central American scrap were at $390 per tonne cfr Taiwan.

“Spot prices will be clearer from next week once Taiwan returns from the major Qingming Festival on Tuesday April 6,” a buyer source in Taiwan told Fastmarkets on Thursday.

Offers for Japanese H1&H2 (50:50) were at $440 per tonne cfr Vietnam by Thursday, up by $10 per tonne from $430 per tonne cfr Vietnam in the earlier part of the week. There were limited cargoes in the spot market.

Buyers were looking to purchase cargoes at $415 per tonne cfr Taiwan, although such bids were unlikely to result in any transactions, sellers said.

Major Japanese mini-mill Tokyo Steel has not adjusted its domestic scrap purchase price this week, although fob Japan prices have increased slightly.

Tokyo Steel is presently paying at ¥42,500-43,500 ($384-393) per tonne at Tahara works, ¥42,500 per tonne at Okayama works, ¥43,000 per tonne at Kyushu works, ¥42,000 per tonne at Utsunomiya works and ¥41,500 per tonne at its Takamatsu works.

What to read next
Battery manufacturer Britishvolt’s gigafactory has received a lifeline from Scale Facilitation Partners LLC and its indirectly wholly owned subsidiary Recharge Industries Pty Ltd following a competitive bidding process, administrator EY said
India will be able to benefit from a supply of its own locally-recycled battery raw materials (BRMs) to feed its nascent lithium battery-producing industry within the next three years.
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
China’s cobalt metal prices rose in the second half of the week to Friday February 3 due to the strength in local futures prices, but market sentiment remained bearish due to sustained weak demand, sources told Fastmarkets
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Spot market premiums for refined nickel products declined sharply in the US following a long period of stagnation. Elsewhere, premiums were stable while Chinese markets re-opened following the Lunar New Year holiday
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.