Taiwan’s leading electric arc furnace steelmaker Feng Hsin Iron and Steel has raised its local bids for scrap for the second week in a row as import prices continue to rise, a source from the mill said August 3.
The company’s bid for local HMS I/II 80:20 has been raised to T$7,900/mt ($269/mt), up T$200/mt from the week before, effective August 4 for deliveries to its Taichung mill.
“We raised it to follow the increase in import prices,” the source said. “There’re still not many volumes of US scrap being offered to Taiwan and even though we are undergoing furnace maintenance, we are still having to monitor the balance closely between import and domestic prices,” the source added.
With Japan readily making scrap offers in recent weeks, the company was also getting more scrap from there and becoming more accustomed to Japan's “cleaner and more standard” scrap qualities, the source said.
US origin HMS I/II 80:20 in 40’ containers was heard being offered at $252-$255/mt CFR and Japanese H1:H2 50:50 scrap in mini-bulk cargoes heard being offered at $265-$270/mt CFR August 3.
The volume of US scrap offered to Taiwan has fallen for four weeks in a row, while prices have risen $20/mt since July 7, according to S&P Global Platts data.
With the increase in scrap prices, the company has raised its rebar list prices by T$200/mt to T$14,400/mt effective August 3 for 12-21 mm diameter ex-works Taichung, excluding value added tax.
-- Samuel Chin, Marcus Ong
Source : Steel Business Briefing
