During the past week, Taiwan’s import scrap market has decreased further both in the US and Japanese segments. Import scrap supply is good, market players stated, though there are some delays in shipments due to the ongoing shortage of containers on the US West Coast.
In the current week, the prices fixed in deals for ex-US HMS I/II 80:20 scrap in containers to Taiwan were at $470/mt CFR, down by $10/mt from $480/mt CFR recorded last week. Current ex-US scrap offers are at $475/mt CFR, while Taiwanese buyers are receiving offers from South American countries at $465-470/mt CFR. South American scrap offers to Taiwan are rarely heard, and the quality of the material is not similar to the US West Coast, market players reported.
Meanwhile, offers from Japan to Taiwan for H1/2 50:50 scrap by bulk are in the range of $520-540/mt CFR, $5/mt lower on average as compared to the deals done at $535/mt CFR last week. “A $50/mt difference between Japanese and ex-US cargoes is high. It is traditionally $20/mt. Hence, no one is accepting Japanese sellers' offers,” a source stated. Another source reported that offers around $500/mt CFR Taiwan from Japan for H1/2 50:50 scrap can be considered workable, which is very low compared to the actual numbers. On the other hand, Japanese suppliers’ offers for H2 grade to Taiwan are in the range of $525-535/mt CFR.
Domestic HMS I/II 80:20 scrap in Taiwan is still at TWD 12,400/mt ($444/mt), stable week on week. Over the past week, domestic rebar quotations in Taiwan have moved sideways at TWD 22,800/mt ($817/mt) ex-works but the rebar market is very quiet. “Since scrap prices are moving down, rebar buyers are afraid to make a move due to the downward potential of rebar quotations. We may see a reduction in domestic rebar prices in the coming week,” a source stated.
$1 = TWD 27.90