Taiwan's leading electric arc furnace steelmaker, Feng Hsin Iron and Steel, raised bids for domestic scrap for the week started Sept. 13, as more mills seek demand for local supply within Taiwan, a source from the mill said Sept. 14.
The company's bid for local HMS I/II 80:20 was raised to T$8,500/mt ($290/mt), up T$300/mt from a week ago, and will be effective from Sept. 15, for delivery to its Taichung mill.
The hike came after the company held off further increases since its last hike, which came into effect on Aug. 25.
Regional traders welcomed the hike in bid prices, as Taiwanese mills have been reluctant to accept stronger seaborne prices, sources said.
"Finally, maybe it is time for us to make some offers to buyers in Taiwan," a Japan-based trader said. Buying inquiries from Taiwan started to pick up since a week ago, the trader added.
"We had quite a few Japanese offers coming in today [Sept. 14], mostly ranging around $305/mt (CFR for H1:H2 50:50)," the Feng Hsin mill source said.
Offers for US-origin containerized HMS I/II 80:20 scrap as of Sept. 14 remained thin and was heard to be in the range of $285-$290/mt CFR, the Feng Hsin mill source said.
Meanwhile, due to the higher scrap prices, Feng Hsin had to hike its listed rebar prices as well, to T$15,100/mt, effective Sept. 14, up T$400/mt from Sept. 7, for 12-21 mm diameter bars, ex-works Taichung, and excluding value added tax.
-- Samuel Chin, Marcus Ong
Source : Steel Business Briefing