Import scrap offers shared with Taiwan this week have followed diverse trends. As ex-US scrap prices increase, the offers received from Japan have softened amid exchange rate fluctuations. Also, the significant increases observed in billet side is helping scrap segment, leading Taiwanese producers to focus on Japan. Market sources report that Chinese billet offers were increased by $30/mt and Russian billet offers have increased by $20/mt in July. Taiwanese producers could make limited rebar sales this week. The major Taiwanese producer Feng Hsin has raised its domestic rebar prices by TWD 300/mt to TWD 15,900/mt ($534/mt) ex-works, with dollar-based prices up by $5/mt, taking the exchange rate into account. However, considering the hike on the billet side, this TWD 300/mt rise is still considered not enough.
Over the past week, the number of offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan has not increased and are still few. The offer prices have moved up by $5/mt on the lower end to $299-300/mt CFR. Meanwhile, actual deal prices moved up from $293-294/mt CFR to $298/mt CFR. “The ex-US containerized scrap prices have become less competitive against the Japanese bulk scrap, so mills have switched to Japanese bulk instead,” a source commented.
Offer prices for Japanese H1/2 (50:50) scrap bulk cargoes have moved down over the past week from the range of $312-320/mt CFR to $309-316/mt CFR. The decline in offer prices is the result of the new Japanese yen-US dollar exchange rate at 150 JPY, market sources report. Actual price in deals was $309/mt CFR, this week, $4/mt higher than the previously confirmed price at $305/mt CFR two weeks ago.
Over the past week, Feng Hsin has kept its scrap procurement prices stable week on week at TWD 8,400/mt ($283/mt) delivered, down by $2/mt on US dollar basis. Market sources report that price has remained stable because import scrap side was more stable than the semi-finished steel offers such as billets.
$1= TWD 29.72