Taiwan’s import scrap market has continued to move down over the past week since demand for scrap will be on the low side in the summer season. Taiwanese mills will start their maintenance works in summer and electricity is more expensive during this time. As a result, they are in no rush to conclude import scrap purchases despite the lower offers they receive.
Ex-US HMS I/II 80:20 scrap in containers are offered to Taiwan at $430-435/mt CFR this week, $15-20/mt lower than the deals done at $450/mt CFR last week. “We are getting ready for the summer, hence our import scrap demand will remain on the lower side for at least three months, no matter what the price be,” a Taiwanese mill commented.
Meanwhile, Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $460/mt, as compared to $500/mt CFR recorded last week. Despite the second $40/mt decline in Japanese offers, the current offer level is considered to be too expensive. “The gap between the ex-US and ex-Japanese offers is quite big. No one will buy Japanese scrap for now. We expect at least one price decrease from Tokyo Steel next week, and it will be reflected in the export segment,” the Taiwanese mill reported.
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased by TWD 500/mt this week in two rounds to TWD 12,800/mt ($432/mt) ex-works, due to the appreciation of the local currency, while down $13/mt 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 22,700/mt ($766/mt) ex-works, with dollar-based prices decreasing by $14/mt week on week. “Local rebar prices have hit the bottom this week, and so buyers have started procurement in small volumes. On the other hand, local scrap inventories are on the low side since they have been falling for more than a month now, while suppliers are selling all their stocks to mills before the summer lull begins,” a Taiwanese source commented.
$1 = TWD 29.64