During the past week, import scrap flow to Taiwan has slowed down due to some uncertainties in the market.
In the current week, the highest prices in deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at $460/mt CFR, against $463/mt CFR recorded last week. However, market players state that ex-US offers are few in number as suppliers are waiting to see the price levels which will be settled in the local US scrap market next week. Also, China’s long holiday which has started today, October 1, is causing sellers to be unwilling to rush into deals. Meanwhile, buyers state that this price decrease in ex-US scrap cargoes is a slight one and so does not raise concerns.
Meanwhile, offers from Japanese sellers to Taiwan for H1/2 50:50 scrap by bulk have remained stable week on week at $500/mt CFR. Domestic scrap demand in Japan is strong, one market source has reported, adding, “with the approaching Kento tender and increases recorded in Japanese mills’ purchasing prices, they are not willing to cut their export offers to Taiwan.”
As some players have lost confidence, local rebar demand in Taiwan has also slowed down due to some buyers becoming hesitant against the backdrop of the Chinese holiday, the Evergrande debt crisis and also the spikes observed in energy costs which are causing shutdowns in China. Having said that, Taiwanese producers are reporting that there is no problem in terms of energy in Taiwan right now. “It is not expected to influence the market in the short term, but in the long run, depending on China, things may be chaotic,” one source stated. Domestic rebar quotations have decreased by TWD 100/mt ($3.6/mt) week on week and are currently standing at TWD 22,500/mt ($808/mt) ex-works.
$1 = TWD 27.85