There have been few import scrap offers shared with the Taiwanese market in the past week. Ex-US scrap sellers have been focusing on other regions, though some increases have been seen in their prices. Japanese sellers are once again retreating from the market due to exchange fluctuations. Domestic rebar sales in Taiwan remained sluggish when the week started and were silent at the end of the week. Meanwhile, major Taiwanese steel producer Feng Hsin has kept its domestic rebar prices stable this week at TWD 15,800/mt ($506/mt) ex-works, with its dollar-based price moving up by $1/mt taking the exchange rate into account. Feng Hsin has continued selling rebar at TWD 15,600/mt ($500/mt) ex-works this week, unchanged week on week TWD, while up by $1/mt on dollar basis. Mills in southern Taiwan have sold rebar with a slightly higher price at TWD 15,300/mt ($484-489/mt) ex-works, up by TWD 150/mt on the lower end. The dollar-based prices have increased by $7/mt on the lower end and by $2/mt on the upper end week on week.
After offering HMS I/II (80:20) scrap in containers at $300-305/mt CFR last week, US suppliers have disappeared from the Taiwanese market. “Domestic scrap is moving sideways in Taiwan and Turkey’s recent price hike has caused them to focus elsewhere than on Taiwan,” a source at a major mill said. Some mills after negotiations have finally concluded ex-US deals at $299/mt CFR this week. Last week there were no deals. So, this price indicates a $4/mt increase for ex-US bookings in Taiwan as compared to November 28.
Japanese sellers once again took a step back from the Taiwanese market this week. “The Japanese yen has not been stable since December started. Market players waited for the Kanto tender and now they expect the Asian scrap market to move sideways amid weak demand,” a source said. Two weeks ago, offers for Japanese H1/2 (50:50) scrap bulk cargoes were at $315-318/mt CFR. In the Kanto export tender, the highest bid was at JPY 45,688/mt ($292/mt) FAS, JPY 728/mt higher than last month, with the dollar-based price down $2/mt.
Feng Hsin has kept its scrap procurement prices stable this week at TWD 8,800/mt ($282/mt) delivered, up by $1/mt on US dollar basis. Collection activities in the local Taiwanese scrap market are at normal levels. “Domestic scrap is scarce but steel mills have sluggish sales and do not need as much scrap as before. This causes a market balance for the mills who want more scrap,” a source commented.
$1 = TWD 31.20
