Over the current week, import scrap prices in Taiwan have once again decreased, while sources think they have hit bottom levels for now.
Offers for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at $452/mt CFR as compared to the levels of $465/mt CFR last week. Market players state that there were some deals done at around $450/mt CFR, down by $10/mt or more from prices in deals a week before. However, with prices falling, market players state that there are currently no offers from the US, as sellers are not willing to conclude more sales at the current price levels, citing the lack of containers and freight charges.
Meanwhile, offers from Japan to Taiwan for H1/2 50:50 scrap by bulk have also moved down, from $490/mt CFR to $480/mt CFR week on week. “I think we have hit the bottom in terms of prices,” a source stated, adding, “Prices are considered to be very low.”
Domestic HMS I/II 80:20 scrap prices in Taiwan have decreased from TWD 11,800/mt to TWD 11,500/mt ($320/mt) week on week. Sources stated that domestic scrap flow is good as suppliers are worried about a further decrease in prices, and so they are delivering good amounts of scrap to mills. Also, over the week, domestic rebar quotations in Taiwan have moved down by TWD 500/mt ($14/mt) to TWD 21,700/mt ($603/mt) ex-works. Amid the negative sentiment in China, this decrease in rebar prices was expected and is not a surprise. A source stated that, despite the reductions in domestic rebar prices, rebar producers are happier since scrap costs have also indicated a sharp fall.
$1 = TWD 27.80