Domestic steel scrap prices in Taiwan took yet another beating this week, with mills lowering their buying prices by T$200/mt ($6.50/mt) for HMS grades, coming out from a one-week pause last week from its continued decline since October, Taiwanese market sources said.
Major Taiwanese mini-mill Feng Hsin Iron and Steel cut its domestic scrap buying price to T$9,500/mt ($307.9/mt) for HMS I/II 80:20 grade delivered to its Taichung mill, down T$200/mt from a week ago, a source from the mill said.
Taiwanese domestic scrap prices have been in a downward spiral since October, as bearish product and billet prices globally continued to pressure Taiwanese mills, the source said.
Feng Hsin also cut its rebar selling price to T$17,000/mt ex-works from its Taichung mill for base-sized bars of 12-32 mm in diameter, down T$400/mt from a week ago, the source said.
"China's severe drop in product prices is really affecting the market. Even if buyers have demand, they are afraid to make any purchases now as prices are falling too quickly," a source at a southern Taiwan mill said. "At this current rate of decline, we are planning on reducing production next month. We are very nervous about the current situation."
Other Taiwanese mills said they had also decided to cut scrap buying prices in line with Feng Hsin's adjustment this week on the back of bearish product prices.
