Ahead of the Chinese New Year holiday starting on February 1, demand for scrap and finished steel has been lively in Taiwan. Import scrap prices have continued to move up during the week, with the support of the positive sentiments coming from China for the period after the long holiday and the Olympics.
Deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were closed at $460-465/mt CFR this week, up from $445-450/mt CFR in transactions last week. Some producers stated that they are not buying US scrap, because “it is not feasible.” According to one SteelOrbis contact, “US scrap’s delivery term is so long, like four months sometimes. It is not trading but more like a Christmas wish.”
Japan has managed to sell to Taiwan H1/2 50:50 scrap by bulk at $504-507/mt CFR, while bookings were at $495-500/mt CFR last week. Since Taiwanese buyers are staying away from ex-US bookings, they have preferred to buy Japanese scrap with delivery periods of one month. “Some of us even rushed to buy Japanese scrap to secure tonnages ahead of the Chinese New Year,” a source commented.
Domestic HMS I/II 80:20 scrap prices in Taiwan have moved up by TWD 300/mt ($10.7/mt) week on week to TWD 11,800/mt ($424/mt) ex-works. “Some higher grades have even been priced at TWD 13,000/mt ($467/mt), similar to the numbers observed in Turkey,” a producer reported. During the past week, official domestic rebar prices in Taiwan have also increased sharply, by TWD 300/mt ($10.7/mt) to TWD 20,800/mt ($747/mt) ex-works. “Rebar prices in Taiwan are trending up, and this is expected to continue in the coming days. As a result, buyers are trying to buy rebar before prices go up further. Seeing this situation, we can say sellers are limiting the tonnages available for the domestic market, which is increasing the pressure,” a producer commented.
$1 = TWD 27.86