Taiwans container scrap prices tumble

Taiwanese scrap and rebar prices have continued to head sourth amid weak demand, Kallanish notes.

Leading  Taiwanese EAF mill Feng Hsin Iron & Steel cut its domestic rebar  and scrap purchase prices this week by TWD 300/tonne ($10/t). The mill’s  ex-works list price for #5 (5/8 inches or 15.875mm nominal diameter  base) rebar is now TWD 18,400/t.

“The  rebar market is very slow,” a Kaohsiung trader says. He blames the  weakness in rebar sales on cheaper imported billet and slab. He has not  heard of recent prices for imported billet but believes that they are  now under $500/t cfr Taiwan.

Actual  rebar selling prices are lower because of discounts. Domestic rebar  prices in northern Taiwan are prevailing at TWD 17,800/t, a Taipei  trader says. The mills procurement base price for HMS 1 scrap was  reduced this week to TWD 9,500/t.

Similarly, the import price for US scrap fell with trades taking place late last week at $328/t cfr for container 80:20.

One  trader says he heard mills were bidding at $323-325/t cfr this week.  Another says that the mills are aiming at under $325/t cfr. “The market  is decreasing simply because rebar prices are falling,” he says. There  are no signs of improvement in the short term, he adds.

US  suppliers have reduced their scrap offer prices to $328-330/t cfr, down  from $335/t last Wednesday. Offers for container 80:20 from Latin  America are prevailing at $310/t cfr. Traders say they did not hear of  deals this week.

US-origin container HMS 1&2 80:20 scrap was assessed by Kallanish on Wednesday at $325-328/t cfr Taiwan, down $7/t on week.