Following the uptrend seen in the market during the previous two weeks, Taiwanese producers have cut their import scrap purchase prices over the past week. “Taiwanese mills are back in mute mode again this week as the Chinese steel market is trending down,” a source reported. Major Taiwanese producer Feng Hsin has increased its domestic rebar prices by TWD 200/mt to TWD 18,200/mt ($568/mt) ex-works, with its dollar-based prices increasing by $6/mt week on week, taking into account the exchange rate changes.
Offers for ex-US HMS I/II (80:20) scrap in containers have remained stable in the range of $333-335/mt CFR. Some Taiwanese producers have concluded bookings for this grade at $325-326/mt CFR this week, $4-5/mt lower week on week. Despite the ex-US bookings, a source at a major Taiwanese producer said that H1/2 50:50 scrap offers are more attractive.
There was more activity in terms of offers for Japanese H1/2 (50:50) scrap bulk this week in Taiwan, than there was in terms of ex-US offers, market sources reported. Ex-Japan offers heard in the market were at $340/mt earlier this week but declined to $332/mt CFR later. As a result, the most recent offers from Japan are now lower than last week’s offers at $335-353/mt CFR. Taiwanese producers have signed deals for this grade at around $330/mt CFR, with deal prices declining by $5-10/mt.
Feng Hsin has raised its procurement scrap price by TWD 200/mt CFR to TWD 10,200/mt ($318/mt) delivered, up by $6/mt amid the changes observed in the exchange rate. The domestic market is still trying to close the gap with international scrap prices, market sources report.
$1 = TWD 32.06
