Taiwan’s imported scrap market has shown further signs of weakness this week as buying sentiment continued to deteriorate, following a brief period of firmness. The slowdown in domestic steel demand and cautious procurement activity have pressured bid levels, despite stable offer prices from key suppliers.

Containerised HMS 1&2 (80:20) offers from the US West Coast remained unchanged at $300/tonne cfr Taiwan. However, bids slipped to $290/t cfr amid muted domestic demand and limited interest from local mills. Last week’s deal level of $295/t cfr, which saw some minor deals concluded, has now largely been abandoned by buyers facing tighter cost controls and slow finished steel sales.

Meanwhile, Japanese H1:H2 (50:50) scrap offers stayed steady at $320/t cfr Taiwan, though bid levels remained firm at $315/t cfr, unchanged from the previous week. Despite firm bids, Japanese suppliers have seen limited buying interest from Taiwanese buyers due to the significant differential to US scrap.

On the domestic front, leading producer Feng Hsin Iron & Steel maintained stable prices this week, following last week’s downward adjustments. The company continues to purchase HMS 1 scrap at TWD 8,800/t and is offering rebar at TWD 16,100/t. The sharp cut implemented on 9 June prompted a wave of short-term buying, but with demand shrinking, procurement has cooled again.

Market participants remain cautious, as underlying demand in Taiwan’s construction and manufacturing sectors remains sluggish. While some expected the early-June price correction to trigger a rebound in orders, activity this week suggests sentiment is still subdued.

Kallanish assessed HMS 1&2 80:20 US-origin container scrap at $290-295/t cfr Taiwan on 18 June, down by $2.5/t from a week earlier.

In addition, competitive billet imports have attracted the attention of Taiwanese buyers, leading some to shift away from scrap purchases.