After moving down for weeks, Taiwan's import scrap market has shown strong signs of stabilization amid the renewed conflict in the Middle East. While the international scrap market is showing some recovery in terms of prices, ex-US offers to Taiwan are moving sideways. However, Japanese scrap is still characterized by weakness despite the sporadic offers shared by Japanese suppliers.
Major Taiwanese producer Feng Hsin has raised its domestic rebar prices by TWD 200/mt this week to TWD 17,200/mt ($532/mt) ex-works, with the dollar-based prices moving up by $7/mt taking the exchange rate into account. “This increase is a sign of the bottom reached last week as mills had negative margins. However, the rebar market is expected to remain silent again for several weeks,” a source added. Chinese 5SP grade billet prices have remained stable at $480/mt CFR. Sources report the sideways movement is the result of declines seen in iron ore prices and the rises in ocean freight rates. Russian billet offers were silent this week.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have shown signs of stabilization, only losing $2/mt on the upper end and moving to $330/mt CFR, from the $330-332/mt CFR levels recorded last week. Actual prices in ex-US deals are still at $325/mt CFR, but the number of deals is on the low side. “Most scrap sellers are unwilling to sell at this price as the war on Iran worsens, while other Asian countries are heard to be buying at higher levels,” a Taiwanese source commented.
As previously reported by SteelOrbis, this is the first week of the past nine weeks in which ex-US West Coast containerized scrap prices did not fall. The price of containerized HMS I/II 80:20 remained at $305/mt FAS Long Beach port, while P&S 5ft trended sideways at $320-325/mt FAS, and shredded at $325-330/mt FAS.
Only one offer for Japanese bulk H1/2 (50:50) scrap was shared with Taiwan, with the price standing at $355/mt, $3/mt lower than the previous level recorded two weeks ago. “Ex-Japan scrap prices are getting closer to containerized scrap quotations, as Japan-based MRJ and Tokyo Steel keep lowering their local scrap procurement prices,” 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 32.35
