As Taiwan’s import scrap market has continued its decreasing trend over the past week, market players state that “there is nothing but price fall” in the market. These recent sharp declines have made Taiwanese mills nervous, leading them to expect further price decreases in the coming period. According to a source from a Taiwanese mill, “Producers are scared. This speed of decline is not healthy and they are not sure if this is the bottom.” Another source in Taiwan stated, “We are all experiencing the same problems. Amid the inflation, interest rates are rising and demand for import scrap is on the low side along with steel demand.”
As compared to the levels recorded in SteelOrbis’ report published on July 15, the price of ex-US HMS I/II 80:20 scrap in containers to Taiwan has declined from the range of $360-365/mt CFR to $345/mt CFR. However, offers from Australia for the same grade in containers are even lower, at $340/mt CFR.
Meanwhile, offers for Japanese H1/2 50:50 scrap by bulk to Taiwan have indicated another $20/mt decline from $370-375/mt to $355/mt, both CFR. Japanese scrap has closed the distance with ex-US offers. However, with the real estate financial issues in China, Asian countries consider the current situation to be bad. “This can go for a while and, since China is a big engine, it is negatively impacting our region and will continue to do so,” a source commented.
Meanwhile, the declining trend observed in the Taiwanese domestic market has continued over the past week. Domestic HMS I/II 80:20 scrap prices in Taiwan have declined by TWD 600/mt in two consecutive steps or by $20/mt to TWD 10,100/mt ($337/mt) ex-works. The official domestic rebar prices in Taiwan have decreased by TWD 700/mt ($23/mt) week on week to TWD 20,000/mt ($668/mt) ex-works.
$1 = TWD 29.94
