Taiwanese mills have limited purchases amid a continued rise in offer prices. With finished steel prices rising at a slower pace than that of raw materials, lower-priced domestic scrap trades could pick up this week.
The Davis Index for containerized US-origin HMS 1&2 (80:20), Friday, rose by $13/mt from Thursday to $398/mt cfr Taiwan. Few deals heard at $400/mt with offers rising to $410/mt cfr. Many mills held their bid at $370-380/mt and resisted high offers.
In the bulk market, Japanese HMS 1&2 (50:50) deal heard at $440/mt cfr Taiwan on Thursday.
Tokyo Steel announced its eighth scrap price hike in December with prices up by JPY1,000/mt ($14/mt) for four works, effective Dec 19, while up by JPY1,500/mt del Takamatsu. #2 HMS price for Tahara remained flat at JPY40,000/mt del. Revised bids for #2 HMS are JPY39,500/mt del Okayama, JPY37,000/mt del plant Kyushu, JPY37,000/mt del Takamatsu, and JPY37,000/mt del plant Utsunomiya.
South Korea’s Hyundai Steel also raised bids for Japanese scrap by JPY2,000-3,000/mt ($28-42/mt). Bids for #2 HMS rose to JPY42,000/mt fob Japan, HMS 1&2 (50:50) JPY42,500 fob, Shredded at JPY46,000 fob, HS at JPY46,000 fob and Shindachi at JPY47,000 fob. Market participants believe prices could rise further.
The steelmaker is likely to raise product prices to pass on the increase in raw material costs to end-users in the domestic and overseas markets.