After bottoming up at the end of last week, import scrap prices in Taiwan have improved further as anticipated by SteelOrbis. This has happened even despite the significant decrease observed in iron ore prices having a strong negative impact on the local rebar market, SteelOrbis observes.
From the highest level of $438/mt CFR in deals last week, offers for ex-US HMS I/II 80:20 scrap in containers are now at $450/mt CFR Taiwan. Although the highest level recorded in actual deals this week was at $440/mt CFR, as of today market players think that to conclude new ex-US transactions next week buyers will need to pay $455/mt CFR. “Amid the shortage of containers globally, scrap is not moving around enough,” one market source stated. The negative trend in Turkey has also failed to exert significant pressure on prices in Taiwan as the limited supply has been a more important factor.
With Japan returning from the Obon holiday (August 13-16) and despite the decreases observed in Japan’s Kanto Tetsugen scrap export tender, offers from Japanese sellers to Taiwan for H1/2 50:50 scrap by bulk to Taiwan have been in the range of $485-492/mt CFR as compared to $465/mt CFR last week. This level is considered unacceptable by buyers, while another market player said Japanese sellers are getting ready for the coming period. “With the summer season coming to an end, Taiwanese mills’ demand for scrap will increase. Because of the shortage of containers and higher freight numbers, Japan is keeping its prices at higher levels,” the source stated.
Domestic scrap demand in Taiwan is at normal levels, SteelOrbis understands. On the other hand, following the bottoming out of import scrap prices in Taiwan, SteelOrbis reported that domestic demand improved last week. This has changed as the sharp drop in iron ore prices has created shock waves in the local Taiwanese rebar market. One source stated that rebar sellers are panicking, leading domestic rebar quotations to move down to TWD 22,000/mt ($784/mt) ex-works. “There is no real price for local rebar since everyone is expecting it to decrease further next week. Even with offers $20/mt lower, no one can sell rebar right now. So there is no actual deal price in the market,” another source added.