Despite the slight recovery observed in Taiwan’s rebar market, import scrap prices in Taiwan have continued to move down. The reduced rebar prices leave no profit margins for mills, SteelOrbis understands, and, the less interest they show in scrap given more attractive billet offers, scrap prices remain under pressure, with Japanese sellers taking a step back once more.
Major Taiwanese steel producer Feng Hsin has cut its domestic rebar prices by TWD 300/mt this week to TWD 17,000/mt ($525/mt) ex-works, with dollar-based prices moving down by $13/mt taking the exchange rate into account. Some rebar sales have been done at this new level, sources report, after ten weeks of silence. However, the actual sales prices are at TWD 16,600-16,800/mt ($513-519/mt) ex-works. “This is a negative margin for mills even with their billet imports,” a source added. The Chinese 5SP grade billet price has remained relatively stable at $480/mt CFR, sources report, but there is no appetite for billets either amid weak rebar demand and their already negative margins. There have not been any Russian billet offers this week.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved to $330-332/mt CFR from the $332-337/mt CFR levels recorded last week. Actual prices in ex-US deals have moved down by another $5/mt week on week to $325/mt CFR. “The Iran war has resumed and surging oil prices may affect import scrap prices next week,” a Taiwanese source commented.
As previously reported by SteelOrbis, containerized scrap prices on the US West Coast have continued to fall for a seventh consecutive week, with HMS I/II 80:20 dropping by $5-10/mt to $305/mt FAS Long Beach port, from $310-315/mt FAS last week. Sources have mentioned that they envision the price falling to $300/mt FAS by the end of the month and that $295/mt FAS could be the market bottom, as suppliers would be expected to draw the line and not issue offers below that level. Some offers at $310/mt FAS for the grade were not accepted.
After returning to the market last week at $358/mt CFR, offers for Japanese bulk H1/2 (50:50) scrap to Taiwan have disappeared again this week.
Feng Hsin has lowered its scrap procurement prices by TWD 200/mt over the past week to TWD 9,800/mt ($303/mt) delivered, down by $8/mt on US dollar basis, following the import scrap market.
$1 = TWD 32.366
