During the past week, import scrap offers to Taiwan have moved up by $10-15/mt. While the scrap prices are rising gradually in the region, market players state that demand recovery is lagging. “This rise we observe in the scrap market can still be temporary, it depends on what happens in the finished steel side and steel demand is not so good right now,” a source from a major Taiwanese mill commented. Some negative factors such as the weather, energy prices and costs are still in the play, though steel demand in Taiwan is also accelerating in a slower pace. Southeast Asian scrap market is supported by the collection costs and demand returned from major players such as South Korea. But it is important to mention that all players in the region are monitoring to situation closely to see whether this is a sustainable price increase.
Having stayed away from Taiwan last week, US-based suppliers gradually increased their quotations for the country. Early this week there were some deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan at around $365s/mt CFR. However, as of today, August 26, the offers for this grade are in the range of $375-380/mt CFR, indicating a $15/mt increase week on week. A source from a major Taiwanese mill said that this level in new offers are considered “workable.” Due to the ex-Canada bookings closed last week instead of ex-US, SteelOrbis’ reference price for imported HMS I/II 80:20 scrap in containers in Taiwan last Friday, August 19, was at $360-365/mt CFR.
Ex-Australian HMS I/II 80:20 scrap in containers are offered to Taiwan at $375/mt CFR this week, but no new deals were closed for this grades.
In the current week, prices for Japanese H1/2 50:50 scrap by bulk to Taiwan have moved up from $375-385/mt to $385-395/mt as in offers, both CFR. There were deals done earlier this week at around $375s/mt CFR from Japan for this grade. However, the current offer levels are considered too high by buyers. Japanese scrap is traditionally around $10-15/mt higher than the US origins, so the gap between the US and Japan has reached its limits.
Domestic HMS I/II 80:20 scrap prices in Taiwan have increased by TWD 500/mt or $15/mt to TWD 10,000/mt ($331/mt) ex-works. The official domestic rebar prices in Taiwan also increased by TWD 600/mt or $16/mt week on week to TWD 19,600/mt ($648/mt) ex-works. Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
$1 = TWD 30.23