Taiwan’s import scrap market has continued to move down in the current week due to the sluggish performance of the domestic finished steel segment. A market source has referred to the domestic rebar market as “a complete flameout as the market is still waiting for China to cool down.” Another source pointed out that iron ore prices have increased by $10/mt, adding, “Too much of an increase in iron ore will also be reflected in scrap prices.” Meanwhile, the Taiwanese government restriction on truck weights on highways will come into effect next week. As SteelOrbis reported last week, container weight on trucks will be limited to 20 tons or less and this is expected to impact US container scrap availability in the country. A Taiwanese source said that the limitation is frustrating for all mills in Taiwan. “Next week will probably be a turning point as producers need to adjust container weights when they bid scrap for December and January arrivals, as penalties will start on January 1.” Demand in the local Taiwanese rebar market this week is still sluggish, market sources report, as buyers have just returned from the Mid-Autumn Festival. “Also, the Chinese market is still fragile,” a Taiwanese source added. The main Taiwanese producer Feng Hsin has kept its domestic rebar prices at TWD 17,500/mt ($556/mt) ex-works, with its dollar-based quotations increasing by $10/mt week on week amid the appreciation of the Taiwanese dollar against the US dollar.
While offers for ex-US HMS I/II (80:20) scrap in containers have declined by $5-7/mt over the past week to $310-315/mt CFR, a few deals have been concluded by Taiwanese producers at $305/mt CFR this week, down $5-8/mt week on week. As ex-US scrap prices continue to drop in Taiwan, each new level recorded continues to become the lowest recorded since the end of 2020.
Offers for Japanese H1/2 (50:50) scrap bulk have declined from the $319-327/mt CFR range to $315-320/mt CFR. Taiwanese mills still show little appetite for Japanese scrap.
Feng Hsin has kept its scrap purchase price stable at TWD 9,900/mt ($315/mt) delivered, increasing by $6/mt on US dollar basis amid the changed observed in the exchange rate.
$1 = TWD 31.46