Since SteelOrbis’ report published on November 5, import scrap prices in Taiwan have followed a downtrend, while particularly Japanese scrap offers indicated a sharp fall.
Offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at $465/mt CFR last week. Market players state that there were some deals done at around $460/mt CFR and below, down by over $10/mt fixed in deals a week before. As of today, November 15, Taiwanese buyers target $445-450/mt CFR for this grade, some sources state. The flow from the US is still slow amid the disruptions on the ship transportation, SteelOrbis understands. Also, the decrease observed in Japan originated scrap is leading buyers to expect lower prices in the coming period.
Meanwhile, offers from Japan to Taiwan for H1/2 50:50 scrap by bulk are at $490/mt CFR, significantly lower than the offers recorded at $520-540/mt CFR in early November. There were deals concluded from Japan around this level last week. “Japanese scrap prices are falling in a rapid pace, hence negatively impacting the Taiwanese steel market,” a source commented. As the support Japanese scrap received from the domestic mills decline, it is also reflecting on the export segment, SteelOrbis understands. It is also observed that South Korean mills which had been paying higher levels for Japanese scrap earlier, have started to reduce their bids significantly over the past week.
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased from TWD 12,400/mt to TWD 11,800/mt ($425/mt) week on week. The decrease is explained by the downward pressure on import scrap. Also, over the past week, domestic rebar quotations in Taiwan have moved down by TWD 600/mt ($22/mt) to TWD 22,200/mt ($799/mt) ex-works. “The redirected cargoes [of billets] from China have exerted pressure on the local rebar market, sentiment is pessimistic” a source stated. Another market player reports that trading in the local rebar market has stagnated as scrap prices are decreasing, adding that “buyers and sellers are in a wait-and-see mood while waiting for the market to settle, no one is making a move under the current circumstances.”
$1 = TWD 27.77