Following the decline recorded in the international scrap market, Taiwanese sources report that scrap offers from the US and Japan to Taiwan have also indicated sharp drops this week. “Activity in the Taiwanese rebar market has finally kicked off this week, but quantities are still limited. The declines in billet prices have also taken their toll on prices,” a source reported. The main Taiwanese producer Feng Hsin has lowered its domestic rebar prices by TWD 400/mt to TWD 17,900/mt ($560/mt) ex-works, down by $6/mt on US dollar basis due to the changes in the exchange rate. Market sources pointed out that the current rebar price is the lowest seen in the past three years.
While offers for ex-US HMS I/II (80:20) scrap in containers to Taiwan were at around $340/mt CFR earlier this week, the downtrend of price offers continued during the week and they are now at $325-335/mt CFR. This price range is $15-20/mt lower than the levels recorded at the end of last week. Taiwanese producers concluded deals at $325-328/mt CFR this week, with the actual deal price moving down from $340/mt CFR.
Following the Obon holiday (August 13-16) in Japan, offers for Japanese H1/2 (50:50) scrap bulk scrap opened the week at $360/mt CFR, then declined further to $345-355/mt CFR. This range is $15-20/mt lower than the levels recorded before the holiday. Market sources report that Japanese scrap is still expensive as compared to ex-US containerized scrap. Hence, no ex-Japan deal has been heard in Taiwan this week.
Feng Hsin has cut its scrap purchase price by TWD 600/mt this week to TWD 10,200/mt ($319/mt) delivered, down by $16/mt week on week. A Taiwanese source stated that this cut was a response to the falling global scrap prices and to the drop recorded in international billet prices. “International billet prices have dropped too much this week, roughly by $25/mt.”
$1 = TWD 31.95