Singapore — Containerized HMS prices into Taiwan reached the lowest point of the year this week, marking the sixth week of continued declines, with further pressures mounting as major Taiwanese buyers cautiously retreated from the import market, market sources said Friday.
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S&P Global Platts TSI HMS I/II 80:20 containerized scrap was assessed at $300/mt CFR Taiwan, down $7/mt from a week ago.
Two containerized deals to Taiwan for US-origin HMS I/II 80:20 were last heard concluded Wednesday, one at $302/mt CFR for 1,000mt, and another followed at a lower price of $300/mt CFR for 2,000 mt, a trading source said.
"We were receiving offers for US HMS 80:20 material at $300-305/mt CFR Taiwan, but we are not buying this week out of caution. The product market is not doing too well, and we will be reducing our productions starting next month," a source from a major mill in Taiwan said.
Containerized US-origin HMS I/II 80:20 offers were also heard to have reached $315/mt CFR Thailand, however a potential Thailand buyer told Platts that they are considering retracting their bid at $310/mt CFR as it seemed that regional scrap prices from Hong Kong and Japan have plunged this week.
More pressures were mounting on suppliers as Vietnamese buyers firmly turned away from considering containerized scrap purchases this week as inspection delays were become more of an issue.
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"I did not even get a single bid from our regular buyers for containerized scrap. They are just worried about all the delays now. We heard that the ministry carrying out the inspections does not even have enough manpower on the ground to carry out timely inspections of the cargo at the ports," a scrap trader in Vietnam said.
"Most buyers in Vietnam are also waiting for further direction on domestic billet prices, so I guess with lull demand from Taiwan and Vietnam, container prices are bound to drop," a Singapore trader commented.
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