Steelmaker Feng Hsin Steel kept ferrous scrap prices flat on Monday as cold weather and rising Covid-19 cases weakened finished steel demand in Taiwan. HMS 1&2 (80:20) price remained at TWD11,450/mt del Taiwan southern mills. Feng Hsin’s base price for rebar remained at TWD19,300-19,400/mt ex-southern mills. Most mills lowered bids for imported scrap after last week’s purchases.
The Davis Index for containerized US-origin HMS 1&2 (80:20), Monday, fell by $2/mt from Friday at $444/mt cfr Taiwan. Few deals heard at $445/mt cfr, while bids fell to $440/mt on Monday.
Taiwanese mills are cautiously tracking Chinese ferrous scrap purchase from Japan and Turkish buying, said traders. US-origin exporters, on the other hand, are bullish as deals for shredded 211 heard at $505/mt cfr Qasim.
Market participants believe scrap prices could rise as lockdowns in Europe and other regions tighten supplies. Vessel delays and container shortages are expected to add to the woes of Asian steel mills.
($1=TWD28)