Taiwan’s import scrap prices have remained stable this week amid the absence of Japanese suppliers. Offers from Japan to Taiwan have been silent for the third week as local prices have remained more attractive for the Japanese sellers. Meanwhile, the major Taiwanese producer Feng Hsin has lowered its domestic rebar prices by TWD 200/mt this week to TWD 15,600/mt ($508/mt) ex-works, with dollar-based prices down by $4/mt taking the exchange rate into account. “However, deal prices in southern Taiwan went crazy low to TWD 15,000-15,100/mt ($488-491/mt) ex-works this week. This is not a profitable price, but mills have overwhelming inventory levels and are forced to accept these price levels. This price is a five-year low,” a source from Taiwan said.
Over the past week, the offer prices for ex-US HMS I/II (80:20) scrap in containers have remained relatively stable, changing from $299-305/mt CFR to $298-305/mt CFR. Additionally, actual deal prices have moved up by $2/mt on the lower end to $295/mt CFR. Number of offers from the US was on the low side, market sources reported.
Offers for Japanese H1/2 (50:50) scrap bulk cargoes have disappeared completely due to low container deal prices and Japan’s high local prices as well as the limited supply. The most recent offer from Japan to Taiwan was heard three weeks ago at $315/mt CFR. “Tokyo Steel has been increasing its price every week since mid-September, prices in Tokyo Bay satellite yard has risen up by JPY 3,000/mt,” a Taiwanese source commented.
Feng Hsin has kept its scrap procurement prices stable this week at TWD 8,400/mt ($273/mt) delivered, up by $1/mt on US dollar basis. As import scrap segment has remained sideways this week, domestic quotations have been kept stable.
$1= TWD 30.73
