Taiwanese producers have accepted higher price levels for import and domestic scrap this week, amid Japanese suppliers’ lack of interest in offering to Taiwan amid the ongoing scrap price increases seen not only in Turkey but also in Bangladesh and Japan. The price increases are expected to continue in the short term, despite the lack of support from the local Taiwanese rebar market. Major Taiwanese producer Feng Hsin has raised its domestic rebar prices by another TWD 200/mt over the past week to TWD 17,900/mt ($560/mt) ex-works, with dollar-based prices increasing by $6/mt taking the exchange rate into account. “This is the fifth consecutive week we have observed a rise in the local rebar market. Currently, we observe some tiredness in the rebar market and demand is not so strong,” a source noted. Chinese billet prices have remained at around $485/mt CFR Taiwan, sources report. Russian billet suppliers finally entered the Taiwanese market last week after an absence of almost three months, but they have remained quiet in the current week. “Their prices are higher than the Chinese prices,” the same source added.
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 $345-347/mt CFR to $347-353/mt CFR. Market sources report that the number of offers from the US to Taiwan remains very limited. Actual prices in ex-US deals have moved up from $342/mt CFR to $347-349/mt CFR. A source at a major mill commented, “With Turkey’s purchase prices increasing this week, they are expected to be reflected in Taiwan’s purchase prices in the coming week.”
Japanese H1/2 (50:50) offers to Taiwan have not returned to the market this week. Market sources report that the only offers they received from Japan were for HS grades, again at $388/mt CFR, as compared to last week’s $388-393/mt CFR. “Sellers are waiting for the Kanto tender to be concluded on April 9. Domestic scrap prices in Bangladesh and Japan are continuing their uptrend and sellers show little to no interest in making offers to Taiwan,” a source added.
Feng Hsin has raised its scrap procurement prices by TWD 200/mt over the past week to TWD 10,200/mt ($319/mt) delivered, up by $6/mt on US dollar basis. “As import scrap prices keep moving up, the gap between local and import scrap prices is still large,” a source at a Taiwanese producer commented.
$1 = TWD 31.94
