Import scrap prices in Taiwan have bottomed out and some slight increase has been seen by the end of this week ahead of a possible further rebound, while market players have indicated that, with this expectation, local rebar demand has also improved in the country.
Taiwanese buyers’ bids for ex-US HMS I/II 80:20 scrap in containers at the beginning of the current week were at $430/mt CFR - similar to the levels recorded at the end of last week. However, this level was considered too low by sellers and so the first sales from the US to Taiwan were closed at $435/mt CFR, while towards the middle of the week offers from the US to Taiwan had reached the range of $438-440/mt CFR and $438/mt CFR was the highest level fixed in deals. Market sources state that there were few offers from the US until mid-week amid the low price levels, and none in the last two days of the week.
Amid the Obon holiday on August 13-16 in Japan, no offers from Japanese sellers to Taiwan have been shared this week. Their offers for H1/2 50:50 scrap by bulk to Taiwan were at around $465/mt CFR last week. However, market sources state that the Japanese market is waiting to see the result of the approaching Kento tender to be held on August 20 before making a move in relation to the Taiwanese scrap market.
According to market players, the revival of ex-US scrap prices from the $430s/mt CFR has signaled that prices are bottoming out. As a result, domestic demand in Taiwan has also improved as buyers are now more confident in terms of trade. While domestic rebar prices fell by $10/mt at the beginning of this week, the downtrend came to an end given the rebound in scrap quotations and the market is now more willing to purchase rebar.
Although Taiwan once again managed to control the situation, Asia has been impacted by new waves of Covid-19. One market player cited Vietnam as an example, stating that there has been almost no trade to Vietnam this week as the country has been forced to take some further measures against the pandemic, while a lockdown has been implemented in Ho Chi Minh City.