Taiwan's ferrous scrap imports rose by 2.6pc to 3.62mn t in 2020 on the back of early year growth that cooled and flipped negative in the second half as prices rallied.
The US remained Taiwan's top supplier even as its imports fell by 13.3pc to 1.5mn t on weaker tonnages in the second half of the year. US imports began to fall in September as spot supply became limited from lower collection and higher demand in US domestic markets.
Japanese imports posted the fastest growth, rising by 43pc to 1.1mn t. But Japan's prices started to increase in August, and Taiwanese mills began shying away from that market.
Taiwan's domestic demand for rebar was steadied in 2020 by Taiwanese manufacturers shifting production back from China. Ferrous scrap imports were expected to post a double-digit increase, but buying stalled in the second half as mills resisted higher seaborne prices and a container shortage exacerbated tight supply. Imports fell each month from September, with December the lowest of the year at 211,811t.
Taiwan's crude steel output fell by 7.5pc to 18.7mn t in January-November, Worldsteel data show.
Taiwanese scrap demand is expected to remain at high levels into the second quarter as construction sector outlooks are strong. Steelmakers will be looking to import more scrap as domestic demand cannot meet requirements. But seaborne prices are volatile amid the Covid-19 pandemic and rebounding global steel demand.
The containerised HMS 1/2 80:20 price into Taiwan started to rise from 13 July from $230/t and was at $285/t on 15 September. Although prices started to dip and stopped at $265/t on 7 October, it has been on an upward trend since and hit a new record for 2020 at $445/t on 31 December.
Australian imports posted the second-fastest growth in 2020. Imports from Canada rose in December as mills sought alternate sources. Imports from other origins fell on the month and on the year in December as prices were not workable for mills.
| Ferrous scrap imports | t | ||||
| Country | Dec | ±% Nov | ±% Dec '19 | Jan-Dec | ±% year on year |
| Taiwan import | |||||
| US | 87,245 | -9.3 | -52.9 | 1,532,784 | -13.3 |
| Japan | 46,947 | -9.1 | -52.2 | 1,103,228 | 42.9 |
| Australia | 8,682 | 2.1 | -45 | 176,982 | 23.8 |
| Canada | 17,262 | 64 | -23.6 | 168,930 | -1.4 |
| Dominican Republic | 8,769 | -17 | -4.2 | 93,662 | -29.8 |
| Others | 51,675 | -9.8 | -25.6 | 638,081 | -34.7 |
| Total | 211,811 | -5.5 | -45.9 | 3,620,005 | 2.60 |
| — Taiwan customs | |||||
