During the past week, import scrap offers to Taiwan have continued their uptrend. However, it is observed that the pace of increase of US origin scrap prices is far slower than that of Japanese scrap prices. This has been the result of increased demand and prices for Japanese scrap, mainly from South Korea. It is also known that local scrap demand in Japan is accelerating, supporting quotations. However, for Taiwan, market players state that the rebar market is not providing support for a significant price increase. According to a source at a Taiwanese mill, “Traders bought a lot when rebar prices were on the low side, and their inventory levels were high when prices started to move up. So, they are now just monitoring the steel market, waiting for another opportunity to buy.” Also, the problems in China are being watched closely. Commenting on the threat China poses for Taiwan. SteelOrbis hears that life is continuing normally on the island. But this does not prevent Taiwan feeling the impact of China’s own difficulties, such as the zero-Covid policies resulting in lockdowns and energy shortages. “Price may move down. We need to wait and see,” a source reported.
Early this week, there were some deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan at around $375-380/mt CFR, similar to the offers SteelOrbis reported on August 26. However, the prices have continued to increase over the current week and there were deals done at $380-385/mt CFR. Today, September 2, offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan are at $385/mt CFR and above.
In the current week, offer prices for Japanese H1/2 50:50 scrap by bulk to Taiwan have moved up by $25-35/mt from $385-395/mt to $420/mt, both CFR. “This is way higher than the US prices, but the South Koreans are in the market. So, we do not expect prices to move down if the South Koreans do not take a step back,” a source at a major Taiwanese mill commented. Japanese scrap is traditionally around $10-15/mt higher than US origin scrap.
Meanwhile, Taiwanese rolling mills continue to buy Russian billets, approximately 100,000 mt per month. Taiwan’s ex-Russia billet imports increased over the past months as Russia has few alternative markets in Asia and given China’s slower purchases. The latest negotiations for ex-Russia and ex-Iran billets were done at 515-520/mt CFR Taiwan.
Domestic HMS I/II 80:20 scrap prices in Taiwan have increased by TWD 300/mt or $6/mt to TWD 10,300/mt ($337/mt) ex-works. The official domestic rebar prices in Taiwan have also increased by TWD 400/mt or $6/mt week on week to TWD 20,000/mt ($654/mt) ex-works. Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
$1 = TWD 30.56