Import scrap offers shared with Taiwanese buyers this week have moved up further this week, with Japanese suppliers joining the higher offer levels. However, since scrap prices are moving up, Taiwanese producers are limiting their rebar sales. The leading Taiwanese producer Feng Hsin has increased its domestic rebar prices by TWD 300/mt to TWD 18,000/mt ($562/mt) ex-works, while its dollar-based price has increased by $12/mt week on week, taking into account exchange rate changed. A Taiwanese source said, “The Chinese market dropped dramatically on October 17, iron ore has fallen by $5/mt to $99/mt and billet has moved down by RMB 100/mt. We are watching the market very closely!”
While offers for ex-US HMS I/II (80:20) scrap in containers have increased by $2/mt on average to $333-335/mt CFR, with the upper end declining week on week from $323-340/mt CFR. While a major Taiwanese producer reports very few offers in the market and a couple of deals for this grade done at $330/mt CFR, some other Taiwanese producers have also accepted the $330/mt CFR level. This constitutes another $10/mt rise week on week.
Offers for Japanese H1/2 (50:50) scrap bulk are found more attractive this week as compared to ex-US containerized scrap. Offers heard in the market have been at $335-353/mt CFR, moving up from the $333/mt CFR level recorded late last week. Taiwanese producers have closed deals in the range of $335-340/mt CFR.
Feng Hsin has raised its procurement scrap price by TWD 300/mt to TWD 10,000/mt ($312/mt) delivered, up by $11/mt amid the changed observed in the exchange rate. Market sources said that the increase was due to the uptrend seen in the import scrap markets.
$1 = TWD 32.04