Taiwanese scrap imports fall 9pc on year in April
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.
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Japan's ferrous scrap exports slip in March
Japan's ferrous scrap exports slip in March
Shanghai, 29 April (Argus) — Japan's ferrous scrap exports declined sharply in March as import demand from Vietnam diminished, while the South Korean market remained bearish. Total exports in March retreated by 17pc on the month and by 10pc from the previous year, reaching 516,000t, according to Japan's customs data. Total exports dropped by 4.6pc on the year to 1.6mn t in the first quarter. Japanese scrap exporters encountered challenges because of declining overseas demand since March, as buyers became more cautious in the face of weaker-than-expected downstream demand recovery. Scrap exports will likely remain subdued in the coming months, according to trade sources. Vietnamese buyers were active in the seaborne market at the beginning of the year, but rising inventory levels and uncertainties in the steel sector outlook led them to step back after February. Exports to Vietnam in March dropped by 21pc on the month. The South Korean market is not expected to rise significantly in the near term as domestic scrap prices continued to fall, dropping by $50-60/t over the past three months. "South Korean buyers only fulfilled long-term contracts and stayed away from the spot market," a Japanese trader said. Exports to South Korea plummeted by 38pc to 470,000t in the first quarter. Exports to Taiwan dropped significantly by 41pc from the previous month as buyers were more focused on purchases of containerised scrap. Exports to Malaysia remained steady above 30,000t in March, while exports to the Philippines decreased from 34,000t in February to 13,000t. But a depreciation of the Japanese yen allowed exporters to offer relatively more competitive prices compared to other suppliers, with buyers price sensitive given a sluggish steel market. The yen started to weaken in March, reaching above ¥155:$1 at the end of April from $146.8:$1 in mid-March. Japan ferrous scrap exports (t) Country March % ± vs Feb % ± vs Mar '23 Jan-Mar % ± on year Vietnam 210,014 -20.7 20.7 683,821 48.0 South Korea 156,851 -9.8 -32.2 469,644 -38.1 Bangladesh 43,755 13.8 N/A 91,205 79.0 Taiwan 35,329 -40.8 -62.8 140,755 -28.8 Others 70,023 -20.6 -7.2 213,587 3.0 Total 515,971 -17.4 -10.4 1,599,011 -4.6 Source: Japan customs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
STB chair Oberman to leave rail agency on 10 May
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Japan’s JBIC to finance Chilean copper mine development
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US economic growth slows to 1.6pc in 1Q
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