Taiwan’s import scrap prices have continued to decrease through the current week, while producers report good scrap flow in their domestic market. “We have bought most of our needs, so we are in no rush to conclude deals, particularly for Japanese scrap,” a source at a major mill commented, adding that with Vietnam and South Korea staying out of the market Japanese scrap prices are set to decline further in the coming period. Taiwan also has the Labor Day holiday at the beginning of May, which will have an impact on scrap demand too. Most Asian countries (China, Japan, Vietnam, etc.) have holidays in late April or early May.
Prices recorded in deals for ex-US HMS I/II 80:20 scrap in containers in Taiwan have decreased from $555/mt CFR to $535/mt CFR week on week. “I think the lockdowns in China are also taking their toll on trading. Covid-19 is still a big problem for Asian countries,” a mill stated. However, the congestion at Chinese ports has had no impact on trading or on the available vessel numbers yet, SteelOrbis understands.
Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $560/mt, as compared to $585-590/mt CFR recorded last week. “There is not much finished steel demand in the market right now. Steel prices are expected to move down, hence we are not interested in buying Japanese scrap for now. We monitor the market to see how much Japanese prices will move down,” a source commented.
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased by TWD 300/mt since Monday, April 18, to TWD 14,500/mt ($495/mt) ex-works, $11/mt lower on dollar-basis week on week. According to a Taiwanese mill, “Domestic scrap flow is still strong in Taiwan, suppliers are trying to lower their inventory levels since the decreasing trend of prices continues.” Local scrap prices are expected to decline another TWD 300-400/mt in the coming week. In the same period, official domestic rebar prices in Taiwan have remained stable at TWD 24,500/mt ($836/mt) ex-works, and, due to the depreciation of the local currency, dollar-based prices decreased by $2/mt week on week.
$1 = TWD 29.30