In the current week, import scrap offers to Taiwan have declined slightly, though Taiwanese producers show limited appetite for imports. “Taiwanese mills have very limited sales. Buyers only buy what they need as the Chinese steel market is still dropping,” a Taiwanese source commented. The major Taiwanese producer Feng Hsin has cut its domestic rebar prices by TWD 200/mt to TWD 18,000/mt ($554/mt) ex-works, with its dollar-based prices decreasing by $13/mt week on week taking into account the exchange rate changes.
Offers for ex-US HMS I/II (80:20) scrap in containers have softened from the range of $322-325/mt CFR to $318-325/mt CFR. Some Taiwanese producers have concluded bookings for this grade at $315/mt CFR this week, $3-4/mt lower week on week.
During the past week, the offer range for Japanese H1/2 (50:50) bulk scrap has narrowed back to $328-333/mt CFR. Last week’s upper end of $343/mt CFR has disappeared. No Taiwanese mill concluded an ex-Japan scrap booking this week due to vessel congestion in south and north Taiwan. A source from a major Taiwanese mill stated, “The high stock levels of Taiwanese producers will halt Japanese deals in November.”
Feng Hsin has lowered its scrap purchase prices by TWD 300/mt to TWD 9,900/mt ($305/mt) delivered, down by $13/mt amid the changes observed in the exchange rate. The cut in domestic scrap market is the result of slightly reduced import offers and the high levels of scrap stocks held by Taiwanese producers.
$1 = TWD 32.47