Offers prices for ex-US and ex-Japan scrap in Taiwan have increased slightly this week, but buyers have mainly kept buying at stable levels or at just $1-2/mt higher, as falling billet prices have been exerting pressure. The leading Taiwanese producer Feng Hsin has kept its domestic rebar prices stable again this week - at TWD 18,700/mt ($571/mt) ex-works. “The Taiwanese rebar market is scared and muted by diving international billet prices this week,” a local source said. The lowest offers and some deals for ex-China 3SP billet have been heard at $465/mt CFR, while in the previous round billet sales were at $480-482/mt CFR. Even though by the end of the week billet prices have posted some signs of an improvement amid rises in Chinese futures prices, this has failed to support demand for scrap as billet still holds a price advantage.
Offers for ex-US HMS I/II (80:20) scrap in containers have settled at $349-362/mt CFR, with the higher end of the range up $7/mt over the past week. At the same time, a few deals have been done at $347-350/mt CFR, indicating only a tiny increase from $347-348/mt CFR deal prices last week.
Japanese suppliers of H1/2 (50:50) scrap by bulk to Taiwan have also attempted to raise offer prices due to the appreciation of the Japanese currency, while in general demand in both the local and export market has declined. Offers for this grade and origin have moved slightly higher, to $359-372/mt CFR, versus $360-363/mt CFR last week. A deal for ex-Japan H1/2 scrap has been reported at $359/mt CFR this week.
Feng Hsin has also kept its local scrap purchase price at TWD 11,100/mt ($339/mt) delivered as “the import scrap price is stable,” according to the representative of one mill.