Following the long holiday from January 25 to February 2, Taiwan’s import scrap market has made a positive start in terms of prices. Offers from both the US and Japan have increased sharply as compared to the levels recorded on January 24, following the trend of the international scrap market. Market sources report that, not only are scrap prices rising for Taiwan, but billet prices are also moving up, supported by the surge in international scrap prices. However, trading in the domestic rebar market has been muted this week. Sources report that the rebar stocks bought before the holiday period have not been consumed by buyers during the holiday and that they still remain on the high side. The major Taiwanese producer Feng Hsin has increased its domestic rebar prices by TWD 300/mt to TWD 17,400/mt ($531/mt) ex-works, with its dollar-based prices increasing by $8/mt taking into account exchange rate changes.
Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved up by $10-13/mt to $305-310/mt CFR since January 24. There have been a limited number of deals at $304-305/mt, rising from $295-297/mt CFR before the holiday. Meanwhile, SteelOrbis hears that US-based sellers are asking for $307/mt CFR and above from Taiwanese buyers, against $300/mt previously. Market sources also report that domestic scrap demand in the US is very strong and so US-based suppliers are not in a rush to sell material to Taiwan.
Offers shared for Japanese H1/2 (50:50) scrap bulk have also increased by $6-8/mt in this period to $316-323/mt CFR. SteelOrbis hears that Japanese suppliers are also stepping back to ask for higher levels amid the increase observed in ex-US offers. Taiwanese steel producers have concluded no ex-Japan scrap bookings this week.
Feng Hsin has raised its scrap purchase prices by TWD 300/mt to TWD 9,500/mt ($290/mt) delivered, up $9/mt on dollar basis. Market sources report that the producer has increased its domestic scrap prices following the trend of the import segment.
$1= TWD 32.78