Taiwan’s import scrap market has remained on a downward trend amid negative sentiments over the past week, against the backdrop of adverse weather conditions, slower construction activity and the recent sharp decline recorded in the international scrap market. The long absence of Japanese scrap suppliers has come to an end this week, with their offers softening after the Kanto scrap export tender. Meanwhile, Taiwan’s local rebar market is also moving down. Taiwanese mills are seeking ways to accelerate their rebar sales, reducing their sales prices each week.
Major Taiwanese steel producer Feng Hsin has cut its domestic rebar prices by TWD 200/mt this week to TWD 17,300/mt ($538/mt) ex-works, with dollar-based prices moving down by $10/mt taking the exchange rate into account. However, the market sentiment is bearish, and buyers are asking for prices below TWD 17,000/mt ($529/mt) ex-works. In southern Taiwan, some deals have been done below this level, sources report. Chinese 5SP grade billet prices have remained relatively stable at $475-480/mt CFR, but there is no appetite for billet either amid the weak rebar demand.
Offer prices for ex-US HMS I/II (80:20) scrap in containers to Taiwan have moved to $332-337/mt CFR, from the $339-340/mt CFR levels recorded last week. Actual prices in ex-US deals have moved down by another $5-8/mt week on week to $330/mt CFR. “Scrap prices are falling and we expect them to continue falling in the summer season,” a Taiwanese source commented.
As previously reported by SteelOrbis, the price of containerized HMS I/II 80:20 has fallen by $10-15/mt to $310-315/mt FAS Long Beach port, while containerized P&S 5ft has dropped by the same margin to $325-335/mt FAS, and the price of containerized shredded has decreased to $330-340/mt FAS. Some contacts report HMS I/II 80:20 being quoted at as low as $305/mt FAS, while others project a price of $295/mt FAS as early as Monday.
Japanese suppliers returned to the market this week, offering bulk H1/2 (50:50) scrap to Taiwan at $358/mt CFR. After their long absence from the market, their new offers are on par with the price fall recorded in the Kanto scrap export tender. In the July Kanto tender, the highest bid was at JPY 52,508/mt ($323/mt) FAS, only JPY 1,998/mt lower than last month. The dollar-based price has moved down by $17/mt from last month’s $340/mt FAS.
Feng Hsin has lowered its local scrap procurement prices by TWD 200/mt over the past week to TWD 10,000/mt ($311/mt) delivered, down by $9/mt on US dollar basis.
$1= TWD 32.156
