Taiwan's scrap steel prices have risen, fuelled by restocking purchases from local buyers.

Leading Taiwanese steel mill Feng Hsin Iron & Steel (FH) announced on Monday it would keep its domestic scrap price stable for this week but cut TWD 300/tonne ($9/t) from its rebar offer.

The mill's purchase price for HMS 1 grade scrap stands at TWD 8,600/t. FH's rebar list price for #5 (5/8 inches or 15.875mm nominal diameter base) and larger sizes is at TWD 17,000/t. Although scrap steel prices have not changed, Taiwanese steel mills are now competing to buy scrap for restocking.

This surge in demand has prompted US sellers to raise their offers, aiming to capitalise on the strengthened market conditions. 

Containerised HMS 1&2 (80:20) scrap from the US West Coast was offered at $295-305/t cfr Taiwan. Small amounts of scrap were booked at $288/t cfr late-last week, and then the indicative deal level has increased to $290/t cfr and above. Taiwanese buyers, keen to replenish inventories, have driven a noticeable uptick in transactions, particularly for higher-quality scrap.

However, Japanese scrap sales continue to face challenges in Taiwan, with prices remaining under pressure in Taiwan's competitive market. 

Japanese H1:H2 50:50 scrap is being offered at $300-310/t cfr Taiwan from most sellers, with softer pricing indicating limited demand from surrounding countries and competitive pressures from other suppliers. 

Local market contacts also suggest that variations in quality, shipping costs, and currency exchange rates may be contributing factors.

Kallanish assessed HMS 1&2 80:20 US-origin container scrap at $290/t cfr Taiwan on Wednesday, rising by $5/t from a week earlier.

Imported billet prices have also seen an increase of $5/t this week, with Russian materials' offers rising from $440/t cfr to $445/t cfr Taiwan.