Having started earlier last week, the downtrend of Taiwan’s import scrap market has continued this week. Both import and local scrap markets have recorded price decreases due to buyers’ lack of interest. Market sources report that high rebar inventories at some rebar mills will probably force them to cut capacity utilization rates. Leading Taiwanese steel producer Feng Hsin has lowered its domestic rebar prices by TWD 200/mt week on week to TWD 16,400/mt ($536/mt) ex-works, with the dollar-based price down by $7/mt taking the exchange rate into account. “End-users in southern Taiwan are asking for TWD 16,000/mt and below, but mills are reluctant to sell,” a source reported.
Over the past week, the offer prices for ex-US HMS I/II (80:20) scrap in containers have softened further by $2/mt to $305-308/mt CFR. Additionally, actual deal prices have moved down from $306-307/mt CFR to $302-303/mt CFR. Market sources report that the number of offers they have received from the US is still on the low side.
Offered prices for Japanese H1/2 (50:50) scrap bulk cargoes have also softened, from the range of $317-322/mt CFR to $315-320/mt CFR. “No bulk deal was done this week because Taiwanese mills have no appetite due to their sluggish finished steel sales, high scrap inventories and due to some planned maintenances,” a source said.
Earlier this week, Feng Hsin kept its scrap procurement prices stable at TWD 8,900/mt ($291/mt) delivered, stable on US dollar basis. However, some other Taiwanese producers have cut their local scrap prices by TWD 200/mt week on week. Following this move, Feng Hsin was forced to lower its domestic scrap prices by TWD 300/mt to TWD 8,600/mt ($281/mt) delivered. With some mills deepening their downward price adjustments, the total drop in the Taiwanese domestic scrap market this week was TWD 300-400/mt.
$1= TWD 30.55
