As anticipated by SteelOrbis, Taiwanese import scrap market moved down in the current week. The higher allocation from the US side has supported the fall for this segment, while Japanese are taking a step back from exports. It is known that local Japanese scrap market is still strong, though this did not prevent prices to soften at the beginning of this week. Domestic rebar prices in Taiwan are still set to decline, the downward adjustments are expected to start next week and will exert further pressure on import scrap quotations.
Over the current week, ex-US HMS I/II 80:20 scrap in containers to Taiwan moved down to $350-360/mt CFR as compared to $380-390/mt CFR recorded last week. It is observed that ex-US scrap offers to Asia are following the international trend, mostly moving to lower levels with a sharp pace this week.
Prices for Japanese H1/2 50:50 scrap by bulk to Taiwan are in the range of $390-395/mt CFR, a mere $5/mt decrease observed on the lower end week on week. Last week, Taiwanese mills reported that $390/mt CFR would be accepted by the sellers, though offers were at $395/mt CFR at the end of the week. But it is observed that Japanese suppliers are taking a step back from exports. “Their local scrap market is still strong, hence they are not willing to cut their quotations further this week,” a source from a Taiwanese mill commented.
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased by TWD 300/mt or $14/mt* to TWD 10,400/mt ($332/mt) ex-works. The official domestic rebar prices in Taiwan have remained stable on Taiwanese dollar basis at TWD 20,300/mt ($648/mt) ex-works, but they are expected to move down on Monday, September 19. Due to the fluctuating exchange rate rebar prices have declined by $9/mt* on dollar basis.
*Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
$1 = TWD 31.31