Taiwanese buyers of import scrap report that they are focusing on Japanese scrap, instead of US origin scrap which has indicated a rise in prices. The delivery terms of Japanese scrap are also considered more attractive for buyers, as the Taiwanese steel market does not show signs of recovery. While Taiwan is buying Russian billets and has not taken an official step to sanction Russia yet, market players believe the new EU sanctions on Russian billet will have a positive impact on the market. “Since the EU will cut its billet procurement from Russia, it will mean more allocation for Asia and other countries such as Turkey. It will give us more power over price,” a Taiwanese mill commented. Even though the Taiwanese steel market is waiting for a positive return by China from its week-long holiday, they do not expect a significant change in steel or scrap demand.
Offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan have increased to $365/mt CFR from the levels recorded at $350s/mt CFR at the beginning of the week. “The increase observed in Turkey’s import market has an impact on the offers to Taiwan,” a Taiwanese source reported. However, the US cargoes arrive in Taiwan in two or three months’ time and this period as well as the offer price are not considered to be attractive. “Procuring Japanese scrap is more logical right now,” the source added. Taiwan does not prefer US bulk cargoes as the tonnages are too huge for storage, and “discharging takes too much time”, as a source commented.
Taiwanese sources state that offers for Japanese H1/2 50:50 scrap by bulk to Taiwan have been in the range of $365-370/mt CFR, down from $375-400/mt CFR recorded late last week. A Taiwanese mill confirmed that they have bought some Japanese scrap at $365/mt CFR, $370/mt CFR, and earlier this week at slightly above $370s/mt CFR. Japanese cargoes arrive at Taiwanese ports with a delay of just one month and so are quicker for buyers.
Domestic HMS I/II 80:20 scrap prices in Taiwan have remained stable at TWD 10,400/mt ($329/mt) ex-works. Due to the appreciation of the Taiwanese dollar against the US dollar, the dollar equivalent has risen by $3/mt week on week. The official domestic rebar prices in Taiwan have also remained stable on Taiwanese dollar basis at TWD 20,300/mt ($642/mt) ex-works, up $6/mt in US dollars. Exchange rate fluctuations are taken into consideration when calculating the US dollar-based price changes.
$1 = TWD 31.63