In the wake of ample inventory at steel mills and a pessimistic market sentiment, the scrap steel purchase price for U.S. origin Heavy Melt Scrap (HMS) 1 & 2 (80:20 mix) in China Taiwan has remained steady at $325 per ton CFR since October 22.
Current Market Conditions
Buyers in China Taiwan report that market conditions have not changed significantly from last week. Despite a recent uptick in rebar prices, demand for scrap steel continues to be sluggish. On Monday, a major electric arc furnace steel mill in China Taiwan maintained its domestic scrap steel procurement price and rebar selling price at last week’s levels, marking a pause after two consecutive weeks of price increases. The current domestic scrap price is $317 per ton, while rebar prices are around 18,200 New Taiwan Dollars (approximately $572 per ton).
Supply Dynamics
On the supply side, prices for scrap steel remain above $330 per ton, driven by rising prices for iron ore and steel billets.
As for the current market rates, U.S. HMS 1 & 2 (80:20 mix) is being traded at $325-$326 per ton CFR in China Taiwan, with estimates suggesting that actual transaction prices could fluctuate between $325-$330 per ton. The CFR price for U.S. containerized HMS 1 & 2 (80:20 mix) at China Taiwan’s main port is reported at $325-$330 per ton, reflecting a slight increase of $2 per ton compared to last weekend’s prices of $325-$328 per ton.
Japanese Market Insights
Meanwhile, the bulk price for Japanese H1 (50:50) scrap is quoted between $340-$342 per ton CFR in China Taiwan, but there have been no recorded transactions since last Thursday. A Japanese trader indicated that the procurement volume for October has largely satisfied current demand, leading to a temporary halt in scrap purchases from Japan.
Last week, the latest transaction price for Japanese H1 (50:50) in China Taiwan was $330 per ton CFR.
