Since Taiwan had a two-day National Holiday this week, trading was slower than usual in the country and the domestic rebar market was also silent. Also, due to the negative sentiments in the global scrap market to which the lower price in Japan’s Kanto scrap export tender also contributed, Taiwanese mills have reduced their import scrap quotations. Meanwhile, Feng Hsin has cut its local rebar prices by TWD 200/mt or $8/mt week on week to TWD 18,900/mt ($586/mt) ex-works.
Given the price decrease recorded in the Kanto tender and due to the lower domestic scrap prices, offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have declined slightly to $367-375/mt CFR from $370-375/mt CFR recorded last week. The lowest price recorded in an actual deal was $365/mt CFR, indicating a $3/mt fall in actual prices.
Japanese scrap suppliers are sharing offers for H1/2 (50:50) scrap by bulk to Taiwan at $373-375/mt CFR, indicating a $5/mt decline on the upper end. A major Taiwanese mill concluded a deal for this grade at $370/mt CFR, stable week on week.
Domestic HMS I/II 80:20 scrap prices in Taiwan have declined over the past week by TWD 200/mt or $7/mt to TWD 11,700/mt ($363/mt) delivered to mill. While domestic scrap prices in Taiwan had moved sideways for many weeks, the negative outlook in the international scrap market played a role in the latest decrease. Also, however, SteelOrbis hears that most Taiwanese mills have very high scrap inventories.
$1 = TWD 32.23