While the downtrend of Taiwan’s import scrap procurement prices has continued over the past week, the number of import scrap offers to the country has shrunk. According to a source, “Some market players believe that the Japanese scrap price may have hit the bottom and other suppliers are watching the situation in Turkey closely.” As the sentiment in the international scrap market quickly became positive in the second half of the week, Taiwanese buyers are also monitoring developments. Meanwhile, SteelOrbis has observed that the recent tensions between China and Taiwan have had no big impact on Taiwan. One source commented, “Life is going on as usual and the military activity of China is expected to end in a couple of days.”
As compared to the levels recorded in SteelOrbis’ report published on July 29, the price of ex-US HMS I/II 80:20 scrap in containers to Taiwan has declined from the range of $330-335/mt CFR to $320-325/mt CFR. A source at a Taiwanese mill stated that the number of offers from the US has fallen to almost zero towards the end of the week, noting, “Starting from Wednesday, the number of ex-US offers fell. I think they believe prices may have hit the bottom.” Similarly, there were no offers from Australia for this grade in containers in the second half of the week.
In the current week, prices for Japanese H1/2 50:50 scrap by bulk to Taiwan have indicated another decline from $335/mt to $327/mt, both CFR. Ahead of the anticipated Kanto tender due to be held Wednesday next week, this level is new but not considered unsustainable. “Suppliers accepting lower than $330/mt are rare. No one would accept $327/mt CFR today. Generally speaking, the price should be around $330-335/mt CFR Taiwan,” a source commented. Japanese scrap is traditionally around $10-15/mt higher than US origin scrap.
Domestic HMS I/II 80:20 scrap prices in Taiwan have declined by another TWD 500/mt or $16/mt to TWD 9,100/mt ($304/mt) ex-works. The official domestic rebar prices in Taiwan have remained stable week on week at TWD 19,200/mt ($641/mt) ex-works.
$1 = TWD 29.96