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Taiwan's domestic scrap prices steady this week, at weak levels

Singapore — Domestic ferrous scrap prices in Taiwan were unchanged this week, as scrap inventories for some major mills were still sufficient, although tethering amid the gloomy outlook for steel, Taiwanese market sources said.

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Major Taiwanese mini-mill Feng Hsin Iron and Steel kept its domestic scrap buying price at T$8,400/mt ($273/mt) for HMS I/II 80:20 grade delivered to its Taichung mill, unchanged from the previous week, a source from the mill said. In comparison with a month ago, its price has dropped by a total of T$800/mt, S&P Global Platts data showed.

"The scrap price now is lower than any level of scrap prices seen last year, suppliers are not too happy about it. But the steel prices are just not doing so well now. Taiwanese mills had to cut rebar prices again this week as well," a source from another mill commented.

In lieu of the prevailing weakness in the rebar market, Feng Hsin has cut its rebar selling price this week to T$16,000/mt ($519/mt) ex-works from its Taichung mill for base-size bars of 12-32 mm diameter, down T$300/mt from the previous week, the company source added.

Its rebar price has seen a total drop of T$700/mt compared with a month ago, Platts data showed.

-- Samuel Chin, samuel.chin@spglobal.com

-- Kevin Seo, kevin.seo@spglobal.com

-- Edited by Norazlina Jumaat, newsdesk@spglobal.com