Import scrap prices in Taiwan have continued to fluctuate over the past week, with suppliers from the US trying to increase prices, but higher levels failing to be sustained. Japanese exporters have cut prices to accelerate sales.
Having settled at $453/mt CFR late last week, prices for ex-US HMS I/II 80:20 scrap in containers to Taiwan increased slightly earlier this week to $460/mt CFR in deals. However, market players state that China’s decision to cut production during the celebration of the 100th anniversary of the founding of the Communist Party of China has made scrap prices more fragile. Hence, ex-US HMS I/II 80:20 scrap quotations have decreased again by the end of the week and they have now regressed to the range of $450-455/mt CFR. There are not many offers from the US to Taiwan, SteelOrbis understands.
Japanese suppliers sold H1/2 50:50 scrap by bulk to Taiwan at $503/mt CFR late last week, but prices fixed in transactions recorded earlier this week were closed at $490/mt CFR. While further decreases were observed over the week, the prices in question have bottomed up at $475-480/mt CFR. Currently, market players state that offers for Japanese H1/2 50:50 scrap in bulk today, July 2, are again at $500/mt CFR. This price level is still not attractive compared with offers from US-based competitors.
The Taiwanese scrap market lacks strength, one source stated, adding that, in the current situation, paying for higher-priced Japanese scrap makes no sense. Also, SteelOrbis has learned that local rebar prices in Taiwan are considered to be expensive by buyers, resulting in weak trading activity. Another source stated that steelmakers currently avoid buying scrap as they are struggling to sell finished steel. “Actually their scrap inventory levels are on the high side,” a source commented. As mentioned before by SteelOrbis, the summer season is traditionally slow in Taiwan, and so no improvement is expected in the short term in the country’s import scrap segment.