Taiwanese producers report that ex-US scrap prices to Taiwan have increased slightly, while Japanese suppliers are staying out of the market. SteelOrbis understands that Japanese scrap suppliers are considering how to give export offers amid higher freight rates, while Japanese mills are trying to keep scrap in the domestic market. Major Taiwanese steel producer Feng Hsin has kept its domestic rebar prices unchanged this week at TWD 18,300/mt ($579/mt) ex-works, with its dollar-based price decreasing by $1/mt taking the exchange rate into account. “The market has been sluggish as demand is very weak. Mills are also reluctant to offer because it is difficult to secure scrap,” a source added. Chinese billet prices have remained at around $495/mt CFR Taiwan, sources report, adding that Russian suppliers have declined to share billet offers, preferring to wait until May to gain a clearer picture of the market.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have increased over the past week from the range of $361-363/mt CFR to $363-370/mt CFR. Actual prices in ex-US deals have moved up by $1/mt week on week to $359/mt CFR. Market sources report that the number of ex-US offers has been on the low side this week. As SteelOrbis reported earlier this week, containerized ferrous scrap prices in the US West Coast have continued to increase slightly this week, with the HMS I/II 80:20 price rising to $340-345/mt FAS Los Angeles port, from $335-340/mt FAS last week.
For the second week in a row, Japanese suppliers have struggled to offer H1/2 (50:50) scrap to Taiwan. Last week, the only Japanese offer was for shindachi scrap at $420/mt CFR and this week has also been quiet due to the Golden Week holiday. “After the Kanto tender they are having difficulties. They will probably stay out of the market until the next Kanto tender to be held on May 12,” a source added.
Feng Hsin has kept its scrap procurement prices stable during the past week at TWD 10,700/mt ($338/mt) delivered, down by $1/mt on US dollar basis.
$1 = TWD 31.62
