Import scrap prices in Taiwan have moved up for the second week. Market sources report that the number of offers is on the low side, while prices are expected to continue increasing. Major Taiwanese producer Feng Hsin has raised its domestic rebar prices by another TWD 200/mt to 16,600/mt ($5553/mt) ex-works, with dollar-based prices up by $5/mt taking the exchange rate into account. A source from Taiwan said, “The total rise announced by Feng Hsin in three weeks is TWD 1,000/mt.” As SteelOrbis mentioned last week, this is a dramatic rise and the market finds it difficult to accept and needs time to adjust to this level. Accordingly, trading in the local Taiwanese rebar market has been mute this week.
Over the past week, offer prices for ex-US HMS I/II (80:20) scrap in containers have moved up by $1-3/mt to $307-310/mt CFR. Meanwhile, actual deal prices moved up from $302-304/mt CFR to $305-307/mt CFR.
Despite the holiday in Japan, offer prices for Japanese H1/2 (50:50) scrap bulk cargoes have also increased, from the range of $310-318/mt CFR to $317-320/mt CFR. A deal done by Taiwan was closed at $318/mt CFR this week, $8/mt higher than the previously confirmed price at $310/mt CFR late last week.
Over the past week, Feng Hsin has raised its scrap procurement prices by TWD 200/mt week on week to TWD 8,900/mt ($296/mt) delivered, up by $5/mt on US dollar basis.
$1 = TWD 30.01