Import scrap offers shared with Taiwanese buyers have decreased sharply for the fourth consecutive week as demand for scrap remains on the low side. Japanese suppliers are out of the market given their Golden Week holidays, and so there are no offers for Japanese H2 scrap. “We will hear from Japan next Monday. We expect prices to decrease from their side,” a Taiwanese producer reported.
Deals for ex-US HMS I/II 80:20 scrap in containers in Taiwan decreased from $510/mt CFR fixed in deals last week to $475/mt CFR. Offers for ex-Australia for HMS I/II 80:20 scrap are at $485s/mt CFR, but they are expected to bend and accept the level of $475/mt CFR to Taiwan in actual deals. The decrease in the US segment is considered to be a reflection of the fall observed in the local US scrap market as well as the pessimistic mood in the Taiwanese steel market.
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased by TWD 300/mt this week in two separate steps to TWD 13,600/mt ($458/mt) ex-works, due to the depreciation of the local currency, $14/mt lower on dollar-basis week on week. During the past week, official domestic rebar prices in Taiwan have also moved down, by TWD 500/mt to TWD 23,600/mt ($795/mt) ex-works, with dollar-based prices decreasing by $24/mt week on week. Local scrap and rebar prices are expected to decline further in the coming week. “Since scrap quotations are moving down in Taiwan, finished steel prices cannot be sustained,” a Taiwanese mill commented.
$1 = TWD 29.67