It is observed that both import scrap offers and deal prices have decreased in Taiwan over the past week against the backdrop of the downtrend in international scrap quotations.
After reaching $470/mt CFR in deals late last week, offers for ex-US HMS I/II 80:20 scrap in containers have moved down in Taiwan to $465-470/mt CFR and the price levels recorded in deals have been at $460-465/mt CFR. “US suppliers are still in the market, but there are only a few offers. On the other hand, the large price difference between the US and Japanese suppliers continues to militate in favor of the US,” one player stated.
Japanese suppliers have failed to sell to Taiwan during the past week. Their offers for H1/2 50:50 scrap by bulk to Taiwan have been at $480/mt CFR this week, lower as compared to the $493/mt CFR recorded late last week. Market players state that the driver of the ongoing high levels of Japanese scrap offers is South Korea’s demand for high grade Japanese scrap. However, one market player added that the lack of Japanese scrap bookings in Taiwan is the result of the lack of demand. “Southeast Asian countries are not buying Japanese scrap lately. There is a surge in Covid cases in some countries, such as Vietnam, Thailand and Malaysia, and they are taking further measures to prevent another wave of Covid,” he stated.
Also, Taiwanese buyers realize that international scrap prices are moving down under the influence of Turkey’s import scrap market. Activity in the local Taiwanese rebar market is at a standstill, market sources state, as everyone is waiting for scrap prices to decrease further, which will eventually lead to a fall in the rebar market.