Sentiment in Taiwan’s import scrap market has been very pessimistic this week, market sources have told SteelOrbis. The domestic rebar market is “completely silent” especially amid the price drop observed in the Kanto scrap export tender in Japan, the price cuts announced by Tokyo Steel, and Taiwanese producer Feng Hsin’s announcement of lower scrap purchase prices. Feng Hsin has kept its domestic rebar prices unchanged at TWD 17,900/mt ($560/mt) ex-works, $1/mt lower than last week’s price due to exchange rate fluctuations.
While offers for ex-US HMS I/II (80:20) scrap in containers have declined by $1-3/mt over the past week to $320-327/mt CFR. Taiwanese producers have concluded deals at $315-320/mt CFR this week, $5-8/mt lower week on week. This is the lowest price level recorded for this grade since the end of 2020, market sources indicate.
Offers for Japanese H1/2 (50:50) scrap bulk are now at $329-340/mt CFR, declining sharply from $345/mt CFR recorded last week. Taiwanese mills’ bids for this grade are at around $325/mt CFR, but no deals have been closed.
Having kept its prices stable at the beginning of the week, Feng Hsin then decided to cut its scrap purchase prices by TWD 300/mt to TWD 9,900/mt ($310/mt) delivered, down by $10/mt on US dollar basis. The latter decision was the result of the negative sentiment in the market and the eagerness of local sellers to deliver scrap to mills.
$1 = TWD 31.95