Taiwanese scrap and rebar prices have continued to head sourth amid weak demand, Kallanish notes.

Leading Taiwanese EAF mill Feng Hsin Iron & Steel cut its domestic rebar and scrap purchase prices this week by TWD 300/tonne ($10/t). The mill’s ex-works list price for #5 (5/8 inches or 15.875mm nominal diameter base) rebar is now TWD 18,400/t.

“The rebar market is very slow,” a Kaohsiung trader says. He blames the weakness in rebar sales on cheaper imported billet and slab. He has not heard of recent prices for imported billet but believes that they are now under $500/t cfr Taiwan.

Actual rebar selling prices are lower because of discounts. Domestic rebar prices in northern Taiwan are prevailing at TWD 17,800/t, a Taipei trader says. The mill's procurement base price for HMS 1 scrap was reduced this week to TWD 9,500/t.

Similarly, the import price for US scrap fell with trades taking place late last week at $328/t cfr for container 80:20.

One trader says he heard mills were bidding at $323-325/t cfr this week. Another says that the mills are aiming at under $325/t cfr. “The market is decreasing simply because rebar prices are falling,” he says. There are no signs of improvement in the short term, he adds.

US suppliers have reduced their scrap offer prices to $328-330/t cfr, down from $335/t last Wednesday. Offers for container 80:20 from Latin America are prevailing at $310/t cfr. Traders say they did not hear of deals this week.

US-origin container HMS 1&2 80:20 scrap was assessed by Kallanish on Wednesday at $325-328/t cfr Taiwan, down $7/t on week.