TAIWAN June 26 2014 10:04 AM
TAIPAI (Scrap Register): Prices for Taiwanese scrap imports were mostly stable throughout May, with the price range-bound between $346 a ton and $348 a ton CFR Taiwanese port. The monthly average was down 2.1% on April.
The May monthly average of TSI’s index for Taiwanese im-ports of HMS #1&2 80:20 fell 2.1% month-on-month, equating to a drop of $7.50 a ton.
This fall in pricing can largely be attributed to the implementa-tion of electricity restrictions in the country, vastly reducing the production capacity of steel mills in the country, in turn stunt-ing their scrap requirements. Output will likely fall by up to a third of normal production levels during this period.
With scrap trading activity subdued, there was little volatility in pricing over the course of the month. TSI’s index for Taiwanese imports of HMS #1&2 80:20 remained range-bound between $346 a ton and $348 a ton CFR port for the duration of the month.
Pricing did increase in the last week of May, although this can largely be attributed to international market forces rather than any change in the domestic market. US offers increased to ASEAN countries, meaning that Taiwanese mills were forced to increase their bids in order to secure the tonnage they needed.
The monthly average of TSI’s index for North Asian HMS #1 scrap imports gained by $2 a ton to $363 a ton CFR port in May, whilst the monthly average of TSI’s index for ASEAN imports of HMS #1&2 80:20 fell by $2 a ton to $354 a ton CFR port (both of these indices are currently under development).