Taiwan: Ferrous Scrap Imports Up 17% in Nov’18

Taiwan, one of the leading scrap importers has observed increase scrap imports in Nov’18. The country imported 323,013 MT ferrous scrap in November, up 17% M-o-M as against 275,689 MT ferrous scrap in Oct’18, the recent customs data showed. The largest supplier, USA witnessed a jump of 40% M-o-M in scrap exports that of Japan 32% in Nov’18.

On yearly premises, the country witnessed a significant rise of 122% Y-o-Y in scrap imports as against 145,252 MT ferrous scrap in Nov’17. Notably, scrap imports in Nov’17 were recorded lowest in CY17.

United States remained the largest ferrous scrap supplier – United States scrap exports to Taiwan observed a considerable rise of 40% M-o-M to 154,730 MT ferrous scrap occupying highest 48% share in total scrap imports in Nov’18.

Japan stepped up at second largest supplier position supplying 24,086 MT in Nov’18, up 32% M-o-M as against 18,299 MT in Oct’18. Japanese scrap exports prices decreased sharply in Nov’18. while after a sharp growth in Oct’18, Hong Kong scrap exports dropped by 14% M-o-M supplying 20,057 MT in Nov’18.

Followed by other prominent exporters were Canada (19,710 MT, stable M-o-M), Australia (11,582 MT, -28% M-o-M), Dominican Republic (10,826 MT, -26% M-o-M) and Costa Rica (10,380 MT, +43% M-o-M) to Taiwan occupying 6%, 4%, 3% and 3% share in Nov’18.

Imported scrap prices continued downtrend in Nov’18 – Taiwan witnessed downtrend in imported scrap prices throughout Nov’18. The monthly average price of USA origin HMS (80:20) stood at an average of USD 302-303/MT, down by USD 25/MT in Nov’18. Taiwanese scrap importers observed restocking ahead of a year-end slowdown amid fall in scrap prices.

Also, Taiwanese domestic rebar prices for 12-32 mm dia hit 1 year high in early October spurring demand for Nov’18 scrap imports which plunged again towards closing on global steel price retreat.

In line with this, country’s finish flat exports declined 25% M-o-M to 634,732 MT in Nov’18. Falling demand for finish steel in both export and domestic markets kept sentiments bearish for scrap imports towards the closing of the calendar year.

Scrap imports up 25% Y-o-Y in Jan-Nov’18 – Taiwan imported 3,065,781 MT ferrous scrap during the first eleven months of CY18 as against 2,457,753 MT during the same period last year witnessing a rise of 25% Y-o-Y. Rising scrap purchases could be attributed to increasing EAF based crude steel production and rising finish long (11% Y-o-Y) and finish flat (4% Y-o-Y) exports against the same period last year. Global steel prices remained strong in the first three quarters of 2018.

According to the 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.

Country-wise Taiwan ferrous scrap imports –

Quantity in MnT,
Source: SteelMint Stats