NEW YORK (Scrap Register): Inclement weather and weak demand from the construction sector both acted as a drag on Taiwanese scrap import prices.
Poor weather saw steel capacity utilisation rates fall whilst a softening in activity in real estate segments weighed negatively on domestic rebar demand. Consequently, scrap import prices fell back, to below the $200 a ton mark in the final week.
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After improving in August, obsolete scrap import prices fell to below the $200 a ton CFR Taiwan port mark in the final weeks of September, with concerns over end-user demand once again driving prices lower.
Reports from Taiwan suggested steel producers were amending production schedules as a result of lower rebar demand expectations. This stemmed from inclement weather affecting construction activity. Bids for the raw material consequently fell and fed through to lower import prices.
Where demand for scrap existed it was often satisfied by domestic supply. Buyers reported that local scrap was in plentiful supply and was competitively prices when compared to international prices.
The Taiwanese steel market in general expressed its disappointment at the lack of new stimulus measures from the recently appointed government. As a result, many expected scrap and rebar prices to remain subdued in the short-term.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to firstname.lastname@example.org)