Import scrap offers shared with Taiwanese buyers this week have moved up sharply. The sentiment in Taiwan has been positive since last week due to recovering international scrap market. While scrap prices are moving up, it is also reported by Taiwanese players that the quantity of scrap bought by Taiwanese mills has been limited this week due to the sharp increase in offer prices. Major Taiwanese producer Feng Hsin has increased its domestic rebar prices by TWD 200/mt to TWD 17,700/mt ($550/mt) ex-works, with its dollar-based prices up $5/mt week on week, taking into account the effect of the exchange rate changes.
While offers for ex-US HMS I/II (80:20) scrap in containers have increased by $11-15/mt over the past week to $323-340/mt CFR, some Taiwanese producers have concluded bookings for this grade at $320/mt CFR this week, $10/mt higher week on week. Despite the sharp upward movement in prices fixed in deals, market sources report that sellers are aiming for higher levels as can be seen in their offer prices.
Offers for Japanese H1/2 (50:50) scrap bulk have almost disappeared in Taiwan after the rise recorded in the Kanto scrap export tender and the subsequent increase seen in Tokyo Steel’s local scrap purchase prices. A few offers have been heard in the market at $333/mt CFR, moving up from last week’s $315/mt CFR. While there have been no deals from Japan this week, Japanese sellers also foresee a rise in prices.
Feng Hsin has kept its scrap purchase price at TWD 9,700/mt ($301/mt) delivered, down $1/mt amid the changed observed in the exchange rate. Market sources report that Taiwanese producers’ scrap stock levels are on the high side.
$1 = TWD 32.23