Taiwan’s import scrap demand slows ahead of summer, prices in freefall

Friday, 13 May 2022 14:27:37 (GMT+3)   |   Istanbul
       

Taiwan’s import scrap market has continued its downtrend unabated. “Prices are collapsing everywhere,” a source at a major Taiwanese mill commented, adding, “From now on, the price will soften further every day, as decrease expectations mean market players are refraining from trading.”

Ex-US HMS I/II 80:20 scrap in containers are offered to Taiwan at $450/mt CFR this week, $25/mt lower than the deals done at $475/mt CFR last week. Taiwanese buyers’ demand for scrap is weak and the delivery of new cargoes are in the summer season in Taiwan, and Taiwanese mills are planning for maintenance works for this period because electricity costs are very expensive then. “We will produce less, so our demand for scrap is lower and will remain thus for a while,” the producer said.

Meanwhile, Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $500/mt as compared to $540/mt CFR recorded last week. Despite the $40/mt decline in Japanese offers, there are no bids from Taiwanese buyers. “Even after the second price decrease announced this week, Tokyo Steel’s prices are too high right now. We believe they will need to revise their scrap procurement quotations further in the coming week, and so their export prices will also move down,” a mill commented. With South Korean and Taiwanese mills staying away from concluding deals from Japan, Japanese H2 scrap quotations will probably lose their strength.

Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased by TWD 300/mt this week in two rounds to TWD 13,300/mt ($445/mt) ex-works, due to the depreciation of the local currency, with a decline of $13/mt on dollar-basis week on week. During the past week, official domestic rebar prices in Taiwan have also moved down, by TWD 300/mt to TWD 23,300/mt ($780/mt) ex-works, while dollar-based prices decreased by $10/mt week on week. Traditionally, domestic scrap prices in Taiwan are $20-30/mt cheaper than imports and this traditional margin is not seen right now. As a result, domestic scrap quotations in the country are expected to decline in the coming week. According to a source, “Since the downtrend expectation continues, no one is buying scrap or rebar right now,”

$1 = TWD 29.85


Similar articles

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Pakistani buyers delay new scrap bookings as mood in finished steel segment falters

06 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap market set to show clearer trend next week

01 Feb | Scrap & Raw Materials

Import scrap prices in Pakistan expected to rise further, demand not supportive

10 Jan | Scrap & Raw Materials

Taiwan’s import scrap market softens further despite positive rebar sales situation

05 Jan | Scrap & Raw Materials

Import scrap trade remains muted in Pakistan, prices mainly unchanged

03 Jan | Scrap & Raw Materials

Taiwan’s import scrap market softens as rebar trading slows down

29 Dec | Scrap & Raw Materials

Australia’s Green Steel of WA to build green steel recycling mill

28 Dec | Steel News

Import scrap activity in Pakistan muted due to European sellers’ absence, Red Sea crisis

27 Dec | Scrap & Raw Materials

SteelOrbis year-end review: Turkish steel industry experiences an even more difficult year in 2023

25 Dec | Steel News