During the past week, Taiwanese buyers have received close to zero ex-US scrap offers but instead have seized on offers from Canada and Australia. “US-based suppliers have alternative destinations to which they can sell,” a Taiwanese mill commented, adding, “They prefer to sell to countries such as Vietnam and South Korea, so they have practically disappeared from the Taiwanese market.” Meanwhile, Japanese scrap offers have been given to Taiwan in a wide range, though in deals it is observed that ex-Japan prices have moved down.
There were deals done from Canada and Australia for HMS I/II 80:20 scrap in containers in Taiwan at $560s/mt CFR, which are below the $575-577/mt levels observed from the US last week. “Prices from the US, Canada and Australia were similar in the past, but US domestic demand is good and they are expecting a $100/mt increase in their local scrap quotations. With the demand they are receiving from Vietnam and South Korea, prices of ex-US HMS I/II 80:20 scrap in containers are now higher than prices from Canada and Australia,” a source commented.
As mentioned above, Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan in a wide range of $595-615/mt, as compared to the $600-620/mt CFR range last week. SteelOrbis has also learned that there are some deals concluded from Japan at $595/mt CFR. Commenting on the depreciation of the Japanese yen, market players state that they have taken advantage of the opportunity to buy on the lower end of offers. “Even with the increased yen-based quotations, it made little difference on dollar basis,” a player said.
Domestic HMS I/II 80:20 scrap prices in Taiwan have moved up by TWD 500/mt ($18/mt) as compared to the levels mentioned in SteelOrbis’ report last week, rising to TWD 14,800/mt ($517/mt) ex-works. “Since the price of scrap in Taiwan has reached a high level, scrap dealers may be very active in the coming period,” a trader commented. In the same period, official domestic rebar prices in Taiwan have increased by TWD 500/mt ($18/mt) to TWD 24,300/mt ($848/mt) ex-works. “The increase in rebar prices has been higher than expectations, but, since we are forced to follow international scrap quotations in our rebar price policy, there is nothing that can be done. End-users are also forced to buy rebar at higher levels. It is not a demand-related increase,” a mills stated.
$1 = TWD 28.64
