Taiwan scrap imports slip 9pc on year in Aug

Taiwanese ferrous scrap imports were lower year on year in August as sluggish steel demand and sales prompted steelmakers to schedule maintenance works in the month, dampening spot scrap procurements.

Scrap imports in Taiwan totalled 229,446t in August, marking a 19.4pc fall month on month and an 8.8pc decline year on year, customs data showed. Year to date, however, the net import volume registered at 2.27mn t across January-August, up 14.8pc year on year.

Trade sources attributed the fall in the volume of imported scrap to bearish market fundamentals, and generally higher scrap prices, especially in containerised HMS 1/2 80:20 scrap from the US West Coast, which rose to a two-month high of $372/t cfr towards the end of June. The loading time for seaborne scrap procurement from the US West Coast to Taiwan is typically about 8-10 weeks, which means that deliveries for August scrap shipments are based on June bookings.

Argus assessed the cfr Taiwan containerised HMS 1/2 80:20 index at a monthly average of $366.09/t cfr in August, which was down by 16.4pc year on year.

Market participants said that sentiment on the broader steel and scrap arena was still skewed towards a bearish outlook as the island's manufacturing and industrial sectors continue to decline on weak global consumer demand.

Taiwan's industrial production receded by more than 10pc year on year in August, marking 15 consecutive months of decline, according to the latest data from Taiwan's Ministry of Economic Affairs. Year to date from January to August, the industrial and manufacturing sectors fell by 16.5pc and 17.1pc year on year, respectively.

"We fail to see any significant pickup in steel demand and sales so far in the second half of the year," a buyer said. "Only a handful of mills dealing with specialised steel products are having a field year, but not so much for the rest. There is some market buzz that the bearishness will remain until the second half of 2024."

The US remained the top supplier of ferrous scrap to Taiwan in August, accounting for nearly 41pc of the island's scrap imports at 93,225t, but the import volume was seen at 13.6pc lower from July and 8.3pc lower year on year. Ferrous scrap imports from the US totalled 841,277t year to date, up by 2.7pc year on year.

Scrap exports from Japan rebounded from a low 2022 base and were seen at 25.1pc higher year on year. On a month-on-month basis, the import volume was seen at 30.6pc lower from July as local steelmakers continue to prioritise domestic scrap over imported ones. Year to date, the net import volume from Japan registered at 649,617t, up by 83.1pc year on year.

The Dominican Republic and Australia were the third and fourth-largest exporters of ferrous scrap to Taiwan in August at 13,901t and 12,083t, respectively.

By Ng Jing Zhi