Taiwan’s import scrap market has been impacted by the return of South Korea as a competitor. A source at a major Taiwanese producer said, “South Korea is buying Japanese scrap higher than Taiwan, so we are not getting many offers from Japan for HMS 1/2 50:50 scrap.” As compared to last week, Taiwan’s rebar market is quieter. A source said, “Buyers have concluded enough scrap procurement for now and have maintained a cautious stance against the backdrop of China’s fragile steel market.”
This week, a deal for ex-US HMS I/II 80:20 scrap in containers to Taiwan was closed at $355/mt CFR, indicating a $5/mt fall on the upper end. According to market sources, US suppliers are also taking a step back from Taiwan as they find the current levels very low.
The lowest offer levels for Japanese H1/2 50:50 scrap by bulk to Taiwan are now at $370-375/mt CFR, $5/mt lower than last week.
Domestic HMS I/II 80:20 scrap prices in Taiwan have remained stable at TWD 11,500/mt ($374/mt) delivered to mill. The official domestic rebar prices in Taiwan are now at TWD 18,800/mt ($611/mt) ex-works. Due to the fluctuating Taiwanese dollar-US dollar exchange rate, the dollar-based prices have declined by $1-2/mt over the past week.
$1 = TWD 30.77