During the past week, import scrap flow to Taiwan has slowed down as US-based suppliers have taken a step back as of mid-week, while Japanese suppliers have increased their offer prices to unacceptable levels amid their sales to alternative markets at higher prices.
In the current week, the highest prices in deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at $463/mt CFR, stable week on week. However, market players state that ex-US offers have stopped as of Wednesday and that there have been no offers from the US since then. Also, Taiwanese buyers state that they are receiving offers from Australia for HMS I/II 80:20 scrap in containers at $475/mt CFR.
Meanwhile, offers from Japanese sellers to Taiwan for H1/2 50:50 scrap by bulk have moved up significantly week on week from $500/mt CFR to $530-550/mt CFR. While these levels are not considered workable right now in Taiwan, market players state that higher local scrap prices supported by good levels of demand in Japan have had a role in this price rise.
Over the past week, domestic rebar quotations have remained stable in Taiwan and are still standing at TWD 22,500/mt ($801/mt) ex-works. As international scrap prices are rising and as sentiment is good with China returning to the market, market players state that rebar prices are expected to increase in the coming week. Taiwan's current Level 2 Covid-19 alert was due to expire on Monday but it is now expected to be extended for two weeks until October 18, though some disease-related restrictions will be eased, according to Taiwan’s Central Epidemic Command Center (CECC).
$1 = TWD 28.09