Taiwan's import scrap buyers are exerting further pressure on ex-Japan offers following cuts in local scrap procurement prices by Japanese EAF producers led by Tokyo Steel. While there is still downward potential for Japanese bulk scrap, ex-US scrap prices continue to remain firm this week amid ongoing turmoil in the US-Israel-Iran war. Steel demand is still underperforming in Taiwan, also causing Taiwanese mills to maintain a cautious stance towards all raw materials, including scrap and billets.
The major Taiwanese producer Feng Hsin has kept its domestic rebar prices at TWD 17,200/mt ($532/mt) ex-works, with dollar-based prices moving sideways, taking the exchange rate into account. “Local Taiwanese rebar market will need several weeks for demand to recover,” a source added. Chinese 5sp grade billet prices have remained stable at $480/mt CFR. Sources report that Taiwanese mills are not interested in buying billets, as current rebar prices do not make billet purchases profitable.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved from the $330/mt CFR recorded last week to closer to previous levels at $329-332/mt CFR. This move was considered stable by Taiwanese buyers. Actual prices in ex-US deals are still at $325/mt CFR. “The US-Israel-Iran war is on and off, oil prices are not stabilizing, but sellers are still willing to sell at the same levels recorded last week,” a Taiwanese source commented.
As previously reported by SteelOrbis, containerized ferrous scrap prices for the US West Coast (USWC) export market remained unchanged for another week and actually increased in some deals at the higher end of the price range. HMS I/II 80:20 was sold in some deals at $310/mt FAS Long Beach port, leaving the price range at $305-310/mt FAS. Last week, it stood at $305/mt FAS. Contacts on the USWC are more confident now that the market has bottomed out, even though some market factors are still unclear.
Offers for Japanese bulk H1/2 (50:50) scrap to Taiwan are at $350-358/mt CFR, with the average declining from the only offer shared last week at $355/mt CFR. “Tokyo Steel continued to reduce its local scrap procurement prices this week. Market expectations for the Kanto tender are to indicate a JPY 1,000-2,000/mt decline. The tender will be held next Friday. It is not a good time to buy Japanese bulk scrap,” a Taiwanese source added.
Feng Hsin has kept its scrap procurement prices stable over the past week at TWD 9,800/mt ($303/mt) delivered, unchanged on US dollar basis.
$1 = TWD 32.32
