Taiwanese ferrous scrap imports fell by 9.2pc on the year to 265,070t in April, as demand was dented by poor steel demand and record-high Covid infections.
Imports totalled 972,526t in January-April, down 9.5pc year on year. The fall in imports was mostly driven by sluggish sales of finished and semi-finished steel products, while high scrap import prices further deterred buyers' appetite.
The Argus daily containerised HMS 1/2 80:20 cfr Taiwan assessment averaged $549.50/t cfr in April, up $1.39/t, or 0.25pc, month on month. The index was on a downward trend in April, falling by $63/t in the month to $510/t on 29 April.
"I think people were not expecting the geopolitical tension to last so long," a trader said. "Some buyers who went on a panic-buying spree in March have too much incoming scrap volume all of a sudden." Some sources added that record-high Covid infections in April hindered construction and manufacturing projects, which will lead to decreased demand for long and flat products in the near term.
The US remained the top exporter of scrap to Taiwan in March at 79,939t, down 33.9pc year on year and 34.5pc month on month. The US accounted for 30.16pc of Taiwan's scrap imports in April.
"April was a tough month for US scrap suppliers," one trader said. "No mills were willing to give a firm or even an indicative bid for weeks."
In April, Taiwan's domestic scrap and rebar benchmark setter, Feng Hsin, adjusted domestic scrap prices down by NT$700/t ($23.60/t)to NT$14,700-14,800/t, while domestic rebar prices were revised lower by NT$400/t to 24,100/t.
Scrap imports from Japan fell by 13.1pc on the year as buyers continue to shun the higher-priced H1/H2 50:50 scrap. Taiwanese mill added that firm domestic demand in Japan also dented Japanese suppliers' interest to export.
The Dominican Republic was the third-largest exporter of scrap to Taiwan in April at 21,452t, closely followed by Australia at 17,3314t.
Looking ahead, traders said that import volume is likely to remain at depressed levels in May on bearish fundamentals as they do not see any upside or positive indicators in the near term. Tepid demand for finished products is still likely to weigh on market sentiment and, ultimately, prices, they added.
