Taiwan's scrap prices rebounded as expected this week. An increase in overseas offer values prompted a lift in scrap import prices.

Kallanish assessed HMS 1&2 80:20 container scrap on Wednesday at $445/tonne cfr Taiwan, up by $13-15/t week-on-week.

Although local steel sales are yet to see major improvement, the gradual recovery in scrap demand in Japan and expectations of this hapening in Turkey have caused prices to rise this week. HMS 1&2 80:20 container scrap from the US West Coast was offered at $445-450/t cfr Taiwan, up by $7-12/t from last week and up $2-5/t compared to the beginning of this week. Meanwhile, H2 50:50 scrap offers also jumped to about $480/t cfr Taiwan, compared with the $460/t cfr offered two weeks ago.

Taiwanese steel mills are not rushing to place orders following the price rise. Local demand is weak, with sales of construction materials, in particular, struggling amid a weak summer market. Steel mills are expected to resist the price rise and will not increase their target buying prices, market participants observe.

Major Taiwanese electric arc furnace mill Feng Hsin Iron & Steel has this week kept its rebar sales prices and scrap purchasing prices stable. Its purchase price for HMS1 is at TWD 11,200/t ($402/t) and the list price for #5 (5/8 inches or 15.875mm nominal diameter base) rebar is at TWD 22,600/t ex-works.

According to customs statistics, Taiwan's total imports of scrap amounted to 1.86 million tonnes in January-July, a year-on-year decrease of 18.7%. The US was the largest supplier with 769,779t, down 20.8%. Imports from Japan were down 48.1% to 405,986t.