While Taiwan’s import scrap market has continued to soften this week, market sources report that Japanese scrap suppliers have been struggling to keep up with the downward trend of ex-US scrap prices. Taiwanese producers finally concluded some rebar deals last week, but the tonnage is reported to have been limited. According to a source, “This week, rebar sales are sluggish again as buyers are expecting lower prices since they know mills have been buying cheap Russian billets over the past three weeks.” A source at a major Taiwanese mill said, “We would like to stabilize the scrap and rebar market but [it is] very difficult when cheap Russian billets are disrupting the market.” The major Taiwanese producer Feng Hsin has kept its domestic rebar prices stable at TWD 17,600/mt ($541/mt) ex-works, with dollar-based prices decreasing by $3/mt week on week amid changes in the exchange rate.
This week, offers for ex-US HMS I/II (80:20) scrap in containers have dropped by $5/mt on the upper end to $295-300/mt CFR. Some Taiwanese producers have concluded bookings for this grade at $290-297/mt CFR this week, decreasing $5/mt on the lower end. However, market sources report that the number of available cargoes has also declined over the past week, while sellers have been reluctant to conclude deals at these levels at the end of the week.
During the past week, offers from Japan to Taiwan have almost disappeared. The few offers shared for Japanese H1/2 (50:50) scrap bulk have moved up slightly from last week’s $310-325/mt CFR range to $320-323/mt CFR. “Japanese scrap cannot follow the downward pace of the container segment. Taiwanese mills are also not buying much due to their ongoing high inventory levels. Even prices in the Kanto tender dropped this week,” a source at a major Taiwanese producer said. As SteelOrbis reported on December 11, in the Kanto export tender the highest bid was at JPY 42,739/mt FAS, JPY 2,441/mt lower than last month. The dollar-based prices have decreased from $293/mt to $280/mt FAS, taking into account the exchange rate changes.
Feng Hsin has kept its scrap procurement prices stable at TWD 9,400/mt ($289/mt) delivered, down by $1/mt on US dollar basis amid the changes observed in the exchange rate.
$1 = TWD 32.51