Taiwan’s import scrap prices have started to rebound this week, though market sources report that the number of offers both from the US and Japan are on the low side. There have been deals done in the local Taiwanese rebar market because of the price recovery seen on the scrap side. Market sources also expect a hike in rebar prices and domestic scrap prices in the coming week. The major Taiwanese producer Feng Hsin has dropped its domestic rebar prices by TWD 200/mt over the past week to TWD 16,600/mt ($550/mt) ex-works, with dollar-based prices down by $7/mt taking the exchange rate into account.
Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved up this week by $7/mt to $292-300/mt. Actual deal prices have also moved up by $4-5/mt to $290-292/mt CFR.
Japanese traders are still showing little interest in selling scrap to Taiwan, though there was an offer for Japanese H1/2 (50:50) bulk scrap at $318/mt CFR this week. “It is still more expensive than US containerized scrap, and there is still no Japanese bulk deal done. The last one was done in early April by Taiwan,” a source at a major Taiwanese mill reported.
Feng Hsin has kept its scrap procurement prices at TWD 8,800/mt ($292/mt) delivered, up by $1/mt on US dollar basis. Some southern Taiwanese mills have increased their domestic scrap purchase prices by TWD 100/mt, but it was due to their previously deeper price cut as compared to Feng Hsin.