Taiwan’s import scrap prices have remained stable this week as Japanese suppliers have remained absent. While offer prices from the US have declined a little, the actual deal prices have remained stable. On the other hand, ex-Japan H2 grade scrap offers have now been absent for the fourth week in a row. Meanwhile, major Taiwanese steel producer Feng Hsin has kept its domestic rebar price stable this week at TWD 15,600/mt ($503/mt) ex-works, with its dollar-based price down by $5/mt, taking the exchange rate into account. “Taiwanese rebar mills have sold some quantities at prices as low as TWD 15,000-15,400/mt ($484-497/mt) ex-works. The market was silent once again after these sales. Increased domestic scrap prices are exerting pressure on Taiwanese mills,” a source in the Taiwanese market said.
Over the past week, offer prices for ex-US HMS I/II (80:20) scrap in containers have declined on the upper end, changing from $298-305/mt CFR to $298/mt CFR, which is closer to the workable levels. Actual deal prices have remained stable for this grade at $295/mt CFR.
Offers for Japanese H1/2 (50:50) scrap bulk cargoes have not returned to the Taiwanese market this week. As SteelOrbis said in its last report, Japanese suppliers are absent and not sharing offers with Taiwan due to attractive container deal prices, Japan’s high local prices and the limited supply. The most recent offer from Japan to Taiwan was heard a month ago at $315/mt CFR. “Although Tokyo Steel has kept its prices stable this week, MRJ has increased its H2 scrap purchase prices twice by a total of JPY 500/mt,” a Taiwanese source commented.
Feng Hsin has raised its scrap purchase prices by TWD 200/mt this week to TWD 8,600/mt ($277/mt) delivered, up by $4/mt on US dollar basis. Market sources report that the price gap between imports and local scrap is very high, and so local purchase prices had some room to increase.
$1 = TWD 30.99
