Import scrap offers shared with Taiwanese buyers have decreased for the third consecutive week as demand for scrap remains on the low side. Market players state that steel demand is still stagnant in Taiwan, and so there is no need to import scrap for now. “The spread of Covid-19 is still an issue in Asia. We have kept it under control in Taiwan for a long time, but since the beginning of April we see a sharp surge in case numbers. Asia, especially China, needs to adjust to Omicron, which is also disrupting the supply chains in our region,” a source at a Taiwanese mill commented.
Offers for ex-US HMS I/II 80:20 scrap in containers in Taiwan decreased from $535/mt CFR fixed in deals last week to $510-515/mt CFR. Similar levels for ex-Australia for HMS I/II 80:20 scrap are offered to Taiwan. “No one is buying scrap right now as steel prices are falling. Amid the Covid-19 lockdowns in China, iron ore prices, billet prices and pig iron are decreasing too,” a SteelOrbis source reported.
Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $545/mt as compared to $560/mt CFR recorded last week. “Japanese scrap prices are not decreasing as sharply as ex-US quotations because local demand in Japan is still strong. On the other hand, the depreciating Japanese yen is in favor of Japanese exporters,” a source commented.
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased by TWD 600/mt this week in two rounds to TWD 13,900/mt ($472/mt) ex-works, due to the depreciation of the local currency, $23/mt lower on dollar-basis week on week. During the past week, official domestic rebar prices in Taiwan have also moved down by TWD 400/mt to TWD 24,100/mt ($819/mt) ex-works, dollar-based prices decreased by $17/mt week on week. Local scrap and rebar prices are expected to decline further in the coming week after the one-day holiday in Taiwan on Monday, May 2.
$1 = TWD 29.43