TAIWAN STEEL SCRAP: Mills put up resistance amid weakening regional market
Import prices for containerized ferrous scrap in Taiwan declined further this week, with steelmakers holding back amid a weakening market for the steelmaking raw material in Asia.
Fastmarkets’ daily price assessment for containerized cargoes of steel scrap, HMS 1&2 (80:20), US material import, cfr main port Taiwan was $230 per tonne on Friday July 3, down by $2 per tonne from Thursday but $15 per tonne lower than $245 per tonne cfr Taiwan a week earlier.
Spot prices for containerized cargoes of heavy melting scrap 1&2 (80:20) from the United States West Coast fell continually throughout this week.
Prices were at $240-245 per tonne cfr Taiwan in the earlier part of the week before they fell sharply to $235 per tonne cfr Taiwan on Wednesday. By Friday, prices were at $230 per tonne cfr.
Traders lowered their offers progressively throughout the week to offload their materials in anticipation of further price drops.
“Buyers are simply not biting. Sellers are having difficulty getting buyers to buy,” a Taiwanese trader told Fastmarkets on Thursday.
Taiwanese steel mills have also cut purchase prices for domestic scrap. They ended the week at NT$6,700-7,700 ($227-261) per tonne this week.
Domestic rebar prices in the island have also fallen by NT$400 per tonne this week to NT$14,000-14,200 per tonne due to weak demand.
A transaction involving a bulk cargo of Japanese H1&H2 scrap (50:50) was concluded at $238 per tonne cfr Taiwan this week, down by $17 per tonne from $255 per tonne cfr Taiwan last week.
Such cargoes were offered at $240-245 per tonne cfr Taiwan this week.
“Sentiment is extremely weak. Confidence in the market has been shaken especially after the resurgence of Covid-19 around the world caused fears of a further slowdown of economies,” a source at a Taiwanese steel mill said on Friday.
Cargoes of Japanese H2 scrap were offered at $240 per tonne cfr Taiwan at the start of this week.