Import scrap offers to Taiwan have once again softened over the past week, with one of the largest suppliers remaining out of the market. Taiwan’s rebar market has also been completely silent this week, according to market players, due to the Labor Day holiday, rainy weather and weak import scrap segment. In the current week, major Taiwanese producer Feng Hsin has kept its rebar prices at TWD 19,100/mt ($590/mt) ex-works, while dollar-based prices have increased by $4/mt over the past week due to currency fluctuations.
Offers for ex-US HMS I/II (80:20) scrap in containers are at $358-361/mt CFR, moving down from $360-365/mt last week. There have been deals closed at around $355-357/mt CFR, also decreasing by $1-3/mt.
No ex-Japan offers for H1/2 (50:50) scrap by bulk to Taiwan offers have been heard this week due to the Labor Day holiday.
Domestic HMS I/II 80:20 scrap prices in Taiwan have remained stable at TWD 11,700/mt ($362/mt) delivered to mill. Due to the appreciation of the Taiwanese dollar against the US dollar, a $3/mt increase has been recorded on dollar basis.
Meanwhile, the downtrend of domestic scrap prices in South Korea has been replaced by a stable trend. However, market sources report that sentiment in the steel segment is still poor and so there is no upward pressure on raw material prices. According to a source at a major South Korean producer, “Since domestic scrap prices are much cheaper that overseas scrap prices, mills are very reluctant to turn their eyes away from domestic scrap. So, not much demand for import scrap is expected.” In the meantime, SteelOrbis hears that scrap export volumes from South Korea seem to be rising, with domestic scrap suppliers seeking more attractive quotations abroad. Sources say they do not have the volumes yet, but sentiments certainly support the choice to export rather than conclude domestic sales.
$1 = TWD 32.35