Taiwan: Ferrous Scrap Imports Drop Marginally in Oct’18

Taiwan, one of the leading scrap importers has observed a marginal fall in scrap imports in Oct’18. The country imported 275,689 MT ferrous scrap in Oct’18, down 4% M-o-M as against 286,941 MT ferrous scrap in Sept’18, the recent customs data showed. Despite the largest supplier, USA witnessed a sharp fall by 38% M-o-M in scrap exports, other major suppliers observed considerably rising exports to Taiwan in Oct’18 following which scrap imports declined marginally in Oct’18.

On yearly premises, the country witnessed a significant rise of 87% Y-o-Y in scrap imports as against 147,429 MT ferrous scrap in Oct’17. Notably, scrap imports in Oct’17 were recorded second lowest in CY17.

United States remained the largest ferrous scrap supplier – United States scrap exports to Taiwan observed a considerable fall of 38% M-o-M. US exported 110,912 MT ferrous scrap occupying highest 40% share in total scrap imports to Taiwan.

Hong Kong stepped up at second largest supplier position supplying 23,332 MT in Oct’18, up 143% M-o-M as against 9,584 MT in Sept’18. Japan observed stability in exports supplying 18,299 MT ferrous scrap in Oct’18 as against 18,089 MT in Sept’18 amid high export prices.

Followed by other prominent exporters were Canada (19,765 MT, +63% M-o-M), Australia (15,987 MT, +121% M-o-M), Dominican Republic (14,693 MT, +6% M-o-M) and Philippines (8,085 MT, +5% M-o-M) witnessing rise in scrap exports to Taiwan occupying 7%, 8%, 5% and 3% share in Oct’18.

Imported scrap prices continued downtrend in Oct’18 – Taiwan witnessed downtrend in imported scrap prices throughout Oct’18. Monthly average price edged down by USD 5-10/MT in Oct’18. USA origin HMS (80:20) stood at an average of USD 323-325/MT in Oct’18 which was recorded at USD 330-332/MT, CFR in Sept’18. Taiwanese scrap purchases remained limited despite fall in prices on weakening finish steel demand in the country.

In line with this, country’s finish flat exports decline marginally by 2% M-o-M to 841,749 MT in Oct’18 while finish long exports dropped 27% M-o-M to 74,396 MT in Oct’18. Falling demand for finish steel in both export and domestic markets could have resulted in declined scrap imports in Oct’18.

Scrap imports up 19% Y-o-Y in Jan-Oct’18 – Taiwan imported 2,742,768 MT ferrous scrap during the first ten months of CY18 as against 2,312,501 MT during the same period last year witnessing a rise of 19% Y-o-Y. Rising scrap purchases could be attributed to increasing EAF based crude steel production and rising finish long (15% Y-o-Y) and finish flat (6% Y-o-Y) exports against the same period last year.

Crude steel output up 3% Y-o-Y during Jan-Nov’18 – According to the data released by World Steel Association, crude steel production in Taiwan stood at 21.08 MnT during Jan-Nov’18 as against 20.54 MnT recorded during Jan-Nov’17. On the other hand, iron ore imports dropped 3% Y-o-Y to 20.08 MnT during Jan-Oct’18 limiting blast furnace route steel production of the country.

Country-wise Taiwan ferrous scrap imports –

Quantity in MnT,
Source: SteelMint Stats