Following the stable trend observed in Taiwan’s import scrap market in previous weeks, SteelOrbis has learned that ex-Japan scrap prices offered to Taiwan have dropped this week. Market sources explain that demand for Japanese scrap both from Taiwan and Vietnam is weak, while demand in the local Japanese scrap market is no different. “The price cut announced by Tokyo Steel earlier this week shows the situation in their local market,” a Taiwanese source reported. Meanwhile, the major Taiwanese steel producer Feng Hsin has reduced its domestic rebar prices by TWD 300/mt to TWD 15,800/mt ($545/mt) ex-works, with the dollar-based price down by $7/mt taking the exchange rate into account. The Taiwanese dollar has appreciated against the US dollar again this week, with market sources saying it is at its strongest level of the past three years. As a result, import billets are cheaper now for Taiwanese buyers.
Over the past week, offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have remained stable in the range of $295-297/mt CFR. Actual deal prices have also moved sideways, at the average price of $294/mt CFR. SteelOrbis still hears that the number of offers shared with Taiwanese buyers is on the low side.
Prices offered for Japanese H1/2 (50:50) scrap bulk cargoes have declined from last week’s $314-325/mt CFR to $309-315/mt CFR. The actual price in deals has also moved down from $313/mt CFR to $305-309/mt CFR.
Over the past week, Feng Hsin has cut its scrap procurement prices by TWD 200/mt week on week to TWD 8,600/mt ($297/mt) delivered, down by $5/mt on US dollar basis. Market sources report that a producer in northern Taiwan was the first to cut its local scrap purchase prices this week, and the other mills followed suit. A source at a major Taiwanese producer reported that their plant cannot consume imported billets due to facility limitations and that they are under significant pressure resulting from production costs.