Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Taiwan’s domestic scrap prices have remained on an uptrend in line with the rise in global ferrous scrap prices. Supplier yards have raised their offers and are refusing low bids this week. In July, rebar and billet export prices rose by $10-15/mt on a fob basis due to high input costs. Ferrous scrap import prices too rose by $15-20/mt during the same period, according to Davis Index analysis. 


Feng Hsin raises prices twice 

Major steel producer, Feng Hsin Steel has hiked offers for the second successive time. The steelmaker located in Taichung, South Taiwan raised its ferrous scrap purchase and rebar sale prices by NT$200/mt ($7/mt) on Monday from a week earlier. With the latest price revision, effective Monday, Feng Hsin’s domestic base HMS 1&2 (80:20) prices will be NT$7,100/mt ($241/mt) delivered Taichung mill. The steelmaker’s base offers for rebar will be at NT$14,200/mt and billet will be offered at NT$12,700/mt ex-works. 


Domestic discounts

Most steel mills in Taiwan are presently offering a discount of upto NT$200/mt on their base offers to encourage mills to book more materials. Other EAF makers in central and northern regions in Taiwan are offering rebar at NT$14,400-14,500/mt ex-yards. Steel mills have increased domestic scrap purchases, and a few are also paying NT$7,300-7,400/mt delivered steel mill for HMS 1&2 (80:20). 


High input cost

Domestic ferrous scrap prices have remained lower than imported. In seaborne trades, late last week US and Australia-origin containerized HMS 1&2 (80:20) traded at $250-255/mt cfr Taiwan. While offers were heard at $255-260/mt cfr Taiwan on Monday, up $5-7/mt. In the export markets, rebar sold at $455-460/mt fob Taiwan while billet offers are at $438-443/mt fob Taiwan, up $15/mt from early July. 



Spread between rebar and billets stable 

In the domestic market, the spread between billets and rebar sales prices have stayed flat for the past three months around NT$1,500/mt. however, the gap between scrap purchase to billet sale prices rose from NT$5,000/mt in June to NT$5,500/mt till early August. 




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