Taiwan’s ferrous scrap imports in July declined by 7pc to 348,061mt from July 2019 and slid by 0.6pc from June, according to preliminary trade data. In the Jan-July period, Taiwan’s ferrous scrap imports rose by 16pc to 2,288,941mt from the prior year period.
| Taiwan’s ferrous scrap imports by country (mt) | |||
|---|---|---|---|
| Top exporters | July | June | MoM change |
| US | 1,53,280 | 1,37,811 | 11% |
| Japan | 1,01,846 | 1,50,582 | -32% |
| Australia | 27,634 | 15,265 | 81% |
| Canada | 16,290 | 17,045 | -4% |
| Costa Rico | 6,861 | 3,526 | 95% |
In July, scrap imports from the US increased by 11pc and imports from Australia rose by 81pc, while imports from Japan dropped by 32pc from the prior month. Taiwan’s ferrous scrap imports from the Central and South American countries increased with steady supplies from Costa Rica, Chile, Dominican Republic, Mexico and Nicaragua.
Taiwanese steel mills were more inclined towards buying containerized HMS scrap from Australia and Central and Southern American yards priced lower than Japanese and the US suppliers. In June-July, HMS scrap imports from these regions were priced on average at least $10/mt lower than other Japanese offers. Low domestic scrap consumption in exporting countries amid the COVID-19 pandemic and the related restrictions also boosted exports at competitive prices.
The government of Taiwan has infused fiscal support to the domestic construction industry to mitigate the impact of the pandemic. New budgetary allocations for urban planning, rail construction projects, water infrastructure, digital infrastructure and renewable energy projects provide a positive outlook for steel prices in Taiwan and could increase scrap imports into the country in Q3 and Q4 2020.