Taiwanese mills raised bids amid rising global scrap prices. The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $1/mt to $424/mt cfr Taiwan on Monday from Friday with offers rising to $425-430/mt cfr. Fewer deals concluded as bids chased offers that kept rising on tight supply.
Mills are cautious and are tracking Japanese exports post-Kanto tender. Offers for #2 HMS rose to $455-460/mt cfr and offers from USWC for HMS 1&2 (80:20) rose to $475-480/mt cfr on Monday. After strong purchases by Turkish mills last weeks for May shipments and with the start of Ramadan, many market participants anticipate price to fall next week. In Turkey, the Davis Index for HMS 1&2 (80:20) fell Friday by $1.45/mt cfr to $431.78/mt cfr.
On strong global cues, Taiwanese steelmaker Feng Hsin raised domestic ferrous scrap bid by TWD500/mt ($17/mt) to TWD11,200/mt delivered southern mill, while its offers for rebars were up TWD700/mt on Monday.
Tokyo Steel raised ferrous scrap bids post-Kanto tender. Effective March 13, the steelmaker raised ferrous scrap purchase prices by JPY1,500/mt ($13.7/mt) delivered Tahara and JPY1,000/mt for all other plants. Tokyo steel’s bids are at JPY42,500/mt ($388.7/mt) delivered Tahara, JPY41,500/mt delivered Okayama, JPY42,000/mt delivered Kyushu, JPY41,000/mt delivered Utsunomiya and JPY40,500/mt delivered Takamatsu.
Market participants expect prices to rise further as South Korean, Vietnamese and Taiwanese mills focus on bulk bookings instead of containerised scrap due to a shortage of containers and vessel delays.