Taiwan’s demand for import scrap has remained sluggish this week as mills are struggling to sell finished steel, particularly rebar. The number of ex-US scrap offers to Taiwan is low, while Japanese suppliers are refraining from giving offers to Taiwan as their domestic market is livelier in terms of prices and demand. Major Taiwanese steel producer Feng Hsin has dropped its domestic rebar prices by TWD 300/mt this week to TWD 15,800/mt ($515/mt) ex-works, with its dollar-based price down by $11/mt taking the exchange rate into account. However, mills in southern Taiwan have sold rebar at TWD 15,300-15,400/mt ($499-503/mt) ex-works, market sources reported, and forced Feng Hsin to sell at TWD 15,600/mt ($509/mt) ex-works. “As some buyers have inventories, the sales volume was not so high this week,” a Taiwanese source commented.
Over the past week, the offer prices for ex-US HMS I/II (80:20) scrap in containers have remained relatively stable, moving from $299-303/mt CFR to $300-302/mt CFR. Additionally, actual deal prices have moved down by just $1/mt to $295/mt CFR. A source at a major mill reported that they have not bought any ex-US cargoes as finished steel demand remains low.
Offers for Japanese H1/2 (50:50) scrap bulk cargoes have disappeared completely once again, following the only offer shared last week at $315/mt CFR. Market sources said that the absence of offers from Japan is the result of extremely low demand from Taiwanese mills and due to the high local prices supported by the limited supply in Japan.
Feng Hsin has kept its scrap procurement prices stable this week at TWD 8,400/mt ($274/mt) delivered, unchanged on US dollar basis. “This is already the lowest price level recorded this year and import scrap prices have not changed much, remaining at the bottom too,” a Taiwanese source told SteelOrbis.
$1 = TWD 30.66
