US ferrous scrap export prices to Taiwan slumped below $200/mt on Thursday, as a US supplier and a Taiwanese mill compromised at $198/mt CFR Taiwan for containerized HMS 80:20.
After booking US material at $203/mt CFR just last week, Taiwanese mills had been bidding below $200 for much of this week, with suppliers refusing to give in until the deal struck Thursday. The purchasing mill had originally lowered its bid to $195/mt before accepting $198/mt.
An Asia-based supplier said the $198/mt sale "could be a possible bottom, as no one is accepting [the mill's] original bid at $195/mt."
US West Coast suppliers were quoted as high as $190/mt FAS earlier this week, as exporters filled previous orders. Quotes had fallen to $185-$188/mt FAS by Wednesday, and Platts assessed US West Coast containerized HMS 80:20 at $183-$185/mt FAS Port of Los Angeles on Thursday. The midpoint was down $2.50/mt on day.
"I'd like to see $198/mt (CFR Taiwan) as the floor, but the Taiwanese domestic market is very weak," one US supplier said. "They are having a hard time getting off rebar sales even at reduced prices."
Sources believed that a super typhoon bearing down on Taiwan Thursday would bring a halt to further sales this week. The typhoon is expected to be one of the strongest to ever touchdown on the island.
