Taiwan’s import scrap market has followed diverse trends for scrap of different origins in the past week. It is observed that Taiwanese scrap users have increased their prices for ex-US scrap, while they have kept quotations for Japanese scrap almost stable.
Ex-US HMS I/II 80:20 scrap in containers were sold to Taiwan at $445/mt CFR at the end of last week, $10/mt higher than the deals done at $435/mt CFR a week earlier. “This slight increase may be the result of China’s return to the market,” a Taiwanese mill commented.
Meanwhile, Japanese H1/2 50:50 scrap by bulk has been offered to Taiwan at $480/mt, and this is almost stable as compared to $483/mt CFR recorded a week ago. The gap between the ex-US and ex-Japanese offers is still large, making Japanese scrap less attractive for Taiwanese buyers.
Domestic HMS I/II 80:20 scrap prices in Taiwan have remained stable at TWD 12,800/mt ($436/mt) ex-works, while official domestic rebar prices in Taiwan have also moved sideways, at TWD 22,700/mt ($772/mt) ex-works. “Ahead of the summer lull, prices are signaling a stabilization. This is the second week that we have seen a sideways movement in the local market,” a Taiwanese source commented.
Taiwan's manufacturing industries may feel stronger pressure arising from adverse macroeconomic situations in the second half of 2022. Taiwan's Central Bank stated, “High global inflation is likely to remain longer due to hikes in international material prices, geopolitical tensions, fluctuating pandemic conditions and risks concerning extreme climate conditions,” adding, “The tight monetary policies taken by the US, the UK and other main economies will slow global economic growth and aggravate fluctuations in financial markets, unfavorably affecting Taiwan's economic and financial situation.”
$1 = TWD 29.39
