Taiwan: Ferrous Scrap Imports Hit 3 Year Low in Feb'19

Taiwan, one of the leading scrap importers has observed a significant fall in scrap imports in Feb'19. The country imported 142,778 MT ferrous scrap in Feb'19, down 44% M-o-M as against 258,324 MT ferrous scrap in Jan'19, the recent customs data showed.

Notably, this is the lowest ferrous scrap import by Taiwan in over 3 years since October 2015 when it had imported 132,597 MT. However, imports had dropped below 150,000 MT mark to 145,252 MT in Nov'17.

Steelmakers could have remained away from buying imported scrap in bulk volumes for Feb'19 shipments ahead Chinese Lunar new year holidays impacting production for a couple of weeks in mid Feb'19.

As per prices maintained with SteelMint, Imported scrap prices to Taiwan recorded at an average of USD 265/MT, CFR for US HMS 80:20 observing a sharp fall against that of the previous month which also hit almost 1 year low. However, finish steel demand remained sluggish over the first quarter in Taiwan.

On yearly premises, the country witnessed a noteworthy fall of 27% Y-o-Y in scrap imports as against 195,155 MT ferrous scrap in Feb'18.

Country's finish flat exports recorded a fall of 28% M-o-M to 564,911 MT and finish long exports dropped 25% M-o-M to 56,518 MT in Feb'19 on monthly premises.

US scrap exports hit over 1 year low in Feb'19 - The USA, despite being the largest supplier witnessed a sharp fall of 58% M-o-M in scrap exports to Taiwan. It exported 63,451 MT in Feb'19 as compared to 151,956 MT in Jan'19. US scrap exports recorded the lowest since Nov'17.

Of all the other major scrap suppliers to Taiwan, only Japan observed growth in exports and stepped up as the second largest supplier, with 19,646 MT supplied in Feb'19, up 25% as against 15,787 MT in Jan'19. Other prominent suppliers Hong Kong (11,601 MT, down 35% M-o-M), Dominican Republic (8653 MT, down 27% M-o-M) and Australia (2963 MT, down 30% M-o-M) observed a drop in exports compared to Jan'19.

Imported scrap prices remain lower side in April '19 - Taiwan witnessed downtrend in imported scrap prices throughout Apr'19. Recent offers of USA origin HMS (80:20) stood at around of USD 285/MT, CFR which was recorded at USD 300-305/MT, CFR in Mar'19.