Import scrap prices for Taiwan have declined over the past two weeks. Market sources report that cheap import billet prices have been exerting pressure on both the finished steel and scrap segments. Major Taiwanese producer Feng Hsin has cut its domestic rebar prices by TWD 700/mt during the past two weeks to TWD 16,100/mt ($544/mt) ex-works, with the dollar-based price down by $18/mt taking the exchange rate into account. The producer said that the cut was due to the “disruption caused by import billets and to try to narrow down the price gap between Feng Hsin and the southern Taiwanese producers.”
Offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan have been in the range of $295-303/mt CFR, as compared to the $302/mt CFR recorded on May 30. Actual deal prices have moved down to $295/mt CFR.
Japanese H1/2 (50:50) scrap bulk cargoes have been offered at $316-321/mt CFR, compared to $323/mt CFR Taiwan on May 30. While the number of offers is limited, no deal has been done by Taiwanese buyers as the Japanese yen remains strong.
Since SteelOrbis’ last report published on May 30, Feng Hsin has decreased its scrap procurement prices by TWD 400/mt to TWD 8,800/mt ($297/mt) delivered, down by $11/mt on US dollar basis, amid declining import scrap prices and cheaper import billet quotations.