Taiwanese mills reduced bids amid sluggish finished steel demand and weak global cues. The Davis Index for containerized US-origin HMS 1&2 (80:20) fell by $7/mt at $363/mt cfr Taiwan on Monday. Some traders reduced bids to $360-370/mt, down by $5-10/mt from Friday, while other exporters held offers in anticipation of a rise in prices after Lunar New Year holidays. Few deals for USWC HMS 1 & 2 (80:20) heard at $370/mt cfr on Friday. Many traders are keen on clearing inventory to avoid a cash crunch.
Feng Hsin reduced domestic ferrous scrap purchase bids by TWD500/mt last Thursday and TWD300/mt on Monday. Rebar prices are cut by TWD800/mt($28.55/mt). Domestic HMS 1&2 (80:20) price Monday is at TWD10,400/mt delivered Taiwan northern mills.
Mills are cautious and tracking Japanese export and Korean import price trends to gauge price direction. With Turkish purchase prices rising by $4/mt on Thursday to $415.89/mt and remaining firm on Friday, exporters expect prices to rise globally and may explore other markets, if Taiwanese mills keep reducing bids.
($1=TWD28)