Taiwanese Scrap Prices Fall On Increasing Supply

The price for containerized US-origin HMS 1&2 80:20 was $420/t cfr Taiwan, which was unchanged from the previous week. Deals were, however, reported earlier this week for $415/t cfr Taiwan. According to a scrap merchant in Taiwan, this week’s prices could drop as low as $410/t cfr. Last week, several reservations were made at $420/t cfr, but local Taiwanese customers no longer accept rates greater than $415/t cfr.

The earthquake has had a substantial influence on Turkey’s scrap demand, and Taiwanese scrap buyers are reexamining the supply and demand structure. According to a Taiwanese scrap recycler, “the market is waiting to see if the demand in Turkey can return soon, especially since mills need to restock before Ramadan at the end of March.”

Offers for Japanese H2 50:50 bulk scrap ranged from $435 to 440/t cfr, although bids from Taiwan were around $5/t lower at $430/t cfr. Sales were still slow.

This week, Feng Hsin Iron & Steel, a local manufacturer of electric arc furnaces, reduced the cost of sourcing scrap and selling rebar by TWD 200/t ($6.58/t). Its current purchase price for HMS1 is TWD 12,400/t ($408/t), and the list price for #5 rebar with a nominal base diameter of 5/8 inches (15.875 mm) stays constant at TWD 21,000/t ex-works.

The steel mill claims there has been no rise in its procurement volumes this week and that the price of imported scrap steel is the same as that of domestic material.