Taiwan: Ferrous Scrap Imports Fall Marginally in 2017

Ferrous scrap exports from United States and Japan fell 9% and 55% respectively while Chinese scrap exports to Taiwan increased almost eight times during 2017.

Taiwan one of the world’s major scrap importer has witnessed a marginal fall in its scrap imports in 2017 as against ferrous scrap imports in CY16. As per recently released customs data, Taiwan imported 2.67 MnT ferrous scrap in 2017 which is down by 8% Y-o-Y as the imports were at 2.91 MnT in 2016.

Notably, Taiwan witnessed its sixth consecutive fall in its yearly scrap imports in 2017 since 2011. In 2011, Taiwan recorded scrap imports above 5 MnT which have now dropped at 2.67 MnT in 2017.

Fall in scrap imports could be attributed to rise in imported scrap prices and tightened supply in 2017.Yearly average prices for HMS (80:20) from USA were at USD 205/MT in 2016 which increased to 273/MT, CNF Taiwan in 2017.

On the other hand, Taiwan’s scrap imports witnessed significant growth of 47% M-o-M in Dec’17. As against 0.15 MnT ferrous scrap imports in Nov’17, Taiwan imported 0.22 MnT ferrous scrap in Dec’17. On yearly premises, ferrous scrap imports in Dec’17 registered 29% increase against 0.17 MnT in Dec’16.

During the second half of 2017, Taiwan imported 1.30 MnT ferrous scrap which stood 5% lesser against 1.37 MnT ferrous scrap imported during H1-2017 and H2-2016 respectively.
Taiwan witnessed fall in ferrous scrap imports by 33% Q-o-Q in Q4-CY17, as against 0.78 MnT imports in Q3-CY17, Taiwan ferrous scrap imports stood at 0.52 MnT in Q4-CY17.

Taiwan also registered marginal fall of 15% Q-o-Q in Q4-CY17 as against 0.61 MnT imports in Q4-CY16.

United States remained the largest ferrous scrap supplier to Taiwan –

During CY17, United States exported highest (1.16 MnT, -9% Y-o-Y) ferrous scrap to Taiwan occupying almost 43% share of total ferrous scrap imports. Japan remained second largest scrap exporter to Taiwan with 0.37 MnT ferrous scrap exports which has recorded 55% fall as against 0.82 MnT exports in 2016. Followed by China (0.31 MnT, +675% Y-o-Y), Hong Kong (0.13 MnT, -7% Y-o-Y), Australia (0.12 MnT, -8% Y-o-Y) and Dominican Republic (0.10 MnT, +67% Y-o-Y) respectively.

Over closure of induction furnaces China’s scrap exports to Taiwan increased sharply by almost eight folds in 2017. China exported 0.31 MnT in 2017 ferrous scrap against 0.04 MnT in 2016.

In Dec’17, United States supplied highest 0.10 MnT ferrous scrap to Taiwan followed by Japan and Hong Kong which supplied each 0.02 MnT ferrous scrap respectively. While other major exporters like Australia and China exported 0.01 MnT ferrous scrap to Taiwan in Dec’17.

Taiwan witnessed marginal growth in crude steel output in 2017 – According to the data released by World Steel Association, crude steel production in Taiwan stood at 23.24 MnT during 2017 compared to 21.75 MnT in 2016, which is up by 7% Y-o-Y.

Country-wise Taiwan ferrous scrap imports –

Quantity In MnT, 
Source: SteelMint Stats