Taiwanese steel producers have started to receive offers from the scrap supplying regions following the silence over the holidays. While ex-US scrap prices have moved down, a stable trend is observed in Japanese scrap prices. In particular, following the rise recorded in the Kanto scrap export tender held today, a firm stance from Japan is anticipated. This week, domestic rebar sales were observed in Taiwan, but the tonnages were limited. Some producers have cut their domestic rebar prices to TWD 16,700/mt ($507/mt) ex-works. “Those mills are cutting their prices based on cheap import billets. Melting scrap does not give that much room to the producer,” a source at a major mill reported. The leading Taiwanese producer Feng Hsin has kept its domestic rebar prices unchanged at TWD 17,400/mt ($528/mt) ex-works, with its dollar-based prices decreasing by $1/mt week on week, taking into account exchange rate changes.
Ex-US suppliers of HMS I/II (80:20) scrap in containers have started to share offers with Taiwan this week, having been out of the market for two weeks during the holiday season. Their current offers are at $290-300/mt CFR Taiwan. There are a few deals at $290-292/mt CFR. This level indicates that actual prices for ex-US HMS I/II (80:20) scrap in containers have declined from the $290-297/mt CFR range recorded on December 20.
Offers shared for Japanese H1/2 (50:50) scrap bulk are now at $310-315/mt CFR, almost the same as the offers shared on December 27 at $309-315/mt CFR. Market sources believe that the workable levels for this grade are at around $305/mt CFR, slightly lower than the previous prices recorded in deals concluded during the week ending on December 27. No deals have been heard in this range and market players are expecting to see the result of Kanto tender, which is held today, January 10. Initial expectations from Japan were for a sideways movement in the Kanto tender, but the highest bid was at JPY 44,810/mt FAS, JPY 2,071/mt higher than last month.
Feng Hsin has kept its scrap procurement prices stable at TWD 9,200/mt ($279/mt) delivered, stable on dollar-basis. “Prices were kept stable since there are not many import scrap offers for reference,” a source commented.
$1 = TWD 32.97