The scrap market in Taiwan continues to face downward pressure as limited demand erodes price support, prompting mills and traders to adopt a cautious stance. 

Feng Hsin Iron & Steel (FH), a leading Taiwanese long steel producer, has kept its scrap procurement price and rebar list price unchanged this week. The company is maintaining its purchase price for HMS 1 grade scrap at TWD 8,800/tonne ($270/t), while the rebar price for #5 (15.875mm) and larger sizes remains steady at TWD 17,800/t.

However, despite stable pricing from FH, overall market sentiment remains subdued.

Domestic rebar sales are underperforming, which has led steelmakers to reduce scrap intake.

Moreover, exchange rate volatility is adding further pressure on scrap import offers, contributing to a broader weakness in Taiwan's scrap market.

For imports, US West Coast containerised HMS 1&2 (80:20) scrap was offered at $300/t cfr Taiwan this week, a $5/t drop from the previous week. A transaction was reported at this level late last week, but Taiwanese buyers are now lowering their target prices to around $295-298/t cfr, highlighting weakening confidence on the market.

Japanese scrap exporters are also showing less interest in the Taiwanese market due to a shortage of shipping capacity, holding their offers at $315/t cfr. According to a Japanese scrap trader, more volumes are being shipped to South Asian destinations, where demand has shown more resilience.

Kallanish assessed HMS 1&2 80:20 US-origin container scrap at $295-300/t cfr Taiwan on 24 April, down by $7.5/t from a week earlier.

Market participants in Taiwan remain cautious, with many still observing from the sidelines. Ongoing uncertainty, particularly surrounding tariffs, is curbing trading appetite and delaying new bookings, keeping the market in a wait-and-see mode.