Import scrap quotations in Taiwan have remained soft this week, in particular with offers from the US declining, while Japanese sellers have kept their offers relatively stable. “Taiwanese mills are still in mute mode because another strong typhoon has hit Taiwan this week,” a source reported. Typhoon Kong-Rey was equivalent to a Category 3 Atlantic hurricane, according to the Joint Typhoon Warning Center (JTWC), and was the strongest typhoon to hit the island in nearly three decades. Major Taiwanese producer Feng Hsin has kept its domestic rebar prices at TWD 18,200/mt ($570/mt) ex-works, while its dollar-based price has increased by $2/mt week on week, taking exchange rate changes into account.
Offers for ex-US HMS I/II (80:20) scrap in containers have declined from the range of $333-335/mt CFR to $330-332/mt CFR. Some Taiwanese producers have concluded bookings for this grade at $320/mt CFR this week, down $5-6/mt week on week.
Offers for Japanese H1/2 (50:50) scrap bulk are still around at $330-332/mt CFR, a slightly lower level compared to last week’s $332/mt CFR. While no new deal from Japan has been heard this week, Taiwanese producers believe the workable levels for this grade are still $330/mt CFR, the same as last week. A source from a major Taiwanese producer mentioned that the $10/mt gap between the ex-US and ex-Japan scrap prices is “reasonable”.
Feng Hsin has kept its scrap purchase price at TWD 10,200/mt ($319/mt) delivered, up by $1/mt amid the changes observed in the exchange rate. The sideways movement is explained by the reasonable gap between US and Japanese scrap prices despite the week-on-week fall observed in the import segment.
$1 = TWD 31.92