Taiwan’s import scrap market has recorded another drop since Monday, June 6, amid the slowdown in the steel industry. “The situation is bad in Taiwan, not as bad as in Turkey obviously, but we see that imports are now at very similar levels to the domestic market, which is interesting since they are usually $20/mt higher than local prices,” a source at a Taiwanese mill commented. While international freight costs to Taiwan are increasing, there is no demand for scrap amid the approaching summer season when trading is on the low side traditionally. “Not only is the scrap price decreasing, prices of billet, rebar and all other steel materials are expected to move down,” the SteelOrbis source reported.
Offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan are at $440-445/mt CFR, down $5/mt on the lower end over the current week. No deal has been concluded at this level. According to one market player, “No one is buying scrap right now in Taiwan ahead of the summer lull and the downtrend observed in the international scrap market.”
Meanwhile, the workable levels for Japanese H1/2 50:50 scrap by bulk to Taiwan are considered to be below $460s/mt CFR after the Kanto tender closed with a sharp decline yesterday, June 9. At the end of last week, Japanese H1/2 50:50 scrap by bulk to Taiwan was at $480/mt CFR.
“Vietnam is struggling economically and there is no demand from there for Japanese scrap either. Mills are actually shutting down in Vietnam,” a source commented.
Domestic HMS I/II 80:20 scrap prices in Taiwan have remained stable since the beginning of the current week at TWD 12,800/mt ($433/mt) ex-works, while official domestic rebar prices in Taiwan have also moved sideways, at TWD 22,700/mt ($768/mt) ex-works. “Local scrap flow is very slow right now. We are not receiving enough flow through them. Domestic scrap sellers believe prices will rebound in the coming period but it is unlikely,” a source said.
$1 = TWD 29.56