Taiwanese Containerized Scrap import prices plummet to $217 a ton in May

TAIWAN June 13 2016 7:12 PM     

TAIPEI (Scrap Register):  Taiwanese prices showed extreme volatility, slumping 32.1% over the  course of May as EAF steelmakers reacted to the worsening demand and price  situation in China by withdrawing from all but the most bearish offers. Local  and Japanese-origin scrap prices were falling quickly, too, said the Steel  Index.

Early last month sellers tried to cash in on high prices of  containerized imports, feeling they had peaked before the oversupply in the  scrap market began to weigh on mills’ buying sentiment.

As the market became oversupplied, so the  prices of imported ISRI grade scrap plummeted and thus domestic scrap became  much more attractive. In turn, domestic suppliers continued to drop offers in  order to secure bookings.

Continuous price drops in the Chinese steel  market filtered through to the Taiwanese market resulting in overseas suppliers  offering large volumes at lower prices for fear of further falls in the market.  The domestic market for finished long products also remained weak with mills  experiencing low demand from end-users.

The final week saw further price  drops in the domestic scrap market, resulting in May seeing an overall decline  of 32.1% (4-week change) and therefore sentiment remained bearish in the market.  

However, with a new leadership in place, it remains to be seen whether  or not the new policies implemented by the Taiwanese government will drive  demand for steel.