Argus steel scrap cfr Taiwan

Price assessment details

What are the advantages of the Argus (key price title) price assessment?

Scrap export markets are all fixed-price spot, meaning that if counterparties cannot reach a deal, nothing is shipped. This inability to execute sets up raised risk for subsequent weeks. Argus’ methodology is proven, robust and created to suit the needs of the modern metals industry. With a large, dedicated global team of experts, we are committed to ensuring the highest quality in price assessments while delivering actionable market news and commentary. Argus Ferrous Markets provides accurate and unbiased price assessments, news and commentary from across global ferrous markets. Volatility drives demand for financial tools that allow market participants to hedge or speculate on the price. The applicability of the Taiwan scrap contract to effectively hedge not only the direct Taiwanese trade, but also the wider Asian scrap trade from Japan, as well as into Vietnam, South Korea and other locations makes Taiwan scrap a novel, timely and highly usable price risk management tool. See our methodology document online for details on how Argus assesses and publishes.

How is this assessment used?

Linking physical price transactions to an index price fundamentally shifts supply dynamics, allowing Taiwanese companies to lock in margins and count on a set quantity of weekly supply. End users, such as construction, can lock in their purchase prices to avoid high prices causing delays. The Taiwanese import market pulls scrap from different supply basins: America’s west coast, Japan and Oceania. It drives correlations in markets such as Vietnam and South Korea. For direct suppliers and buyers, it is crucial to be able to perform a financial hedge. Companies active in the physical spot market for scrap include steel mills, recyclers, service centres, trading firms and scrap-generating manufacturers, such as construction, automotives, appliance and other white and yellow goods producers.