Import scrap prices in Taiwan have continued to move down this week in ex-US offers and deals. SteelOrbis hears that US-based suppliers have started to show some resistance to the current price levels and are unwilling to sell large tonnages at the new price levels amid the sideways movement of the local US scrap market during the June buy-cycle. Japanese scrap suppliers are still out of the market, while market sources report that there is a significant expectation that ex-Japan offers will soften in the coming days.
Major Taiwanese producer Feng Hsin has reduced its domestic rebar prices by TWD 300/mt to TWD 17,500/mt ($549/mt) ex-works, with dollar-based prices moving down by $14/mt taking the exchange rate into account. “Although end-users’ inventory levels are still low, we do not have much confidence in them placing orders as raw material and semi-finished steel prices continue to move down,” a source added. Chinese 5SP grade billet prices have fallen slightly from $495/mt CFR Taiwan to $485-488/mt CFR, sources report, but there is no appetite for billet either amid weak rebar demand.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved to $343-348/mt CFR from the $352/mt CFR levels recorded last week. Actual prices in ex-US deals have moved down by $5-7/mt week on week to $340-343/mt CFR.
As previously reported by SteelOrbis, prices for containerized scrap on the US West Coast fell for the fifth consecutive week as the import scrap market in Asia has shown slower demand. The price of HMS I/II 80:20 has fallen to $325-328/mt FAS Long Beach port from $330/mt FAS last week, the price of P&S 5ft has decreased by $5/mt to $340-345/mt FAS, and shredded is down to $345-363/mt FAS from $350-355/mt FAS last week.
Japanese suppliers have remained out of the market, sharing no offers with Taiwan this week. “Tokyo Bay and Tokyo Steel prices have declined slightly this week. Japanese bulk quotations are still expected to decrease,” a Taiwanese source reported.
Feng Hsin has lowered its scrap procurement prices by TWD 300/mt over the past week to TWD 10,200/mt ($319/mt) delivered, down by $13/mt on US dollar basis.
$1 = TWD 31.88
