Taiwan’s scrap shortage persists due to strong steel demand

SEATTLE (Scrap Monster): Taiwan’s steel demand remains strong for most products despite stagnant rebar sales. This strength keeps the domestic scrap market in a state of underperformance regarding supply.

Although rebar buyers stay quiet, other steel segments continue to see rapid price increases and smooth transactions, forcing many mills to seek raw materials urgently to maintain production levels.

Scrap distribution currently appears uneven due to varying purchasing strategies among mills. Some factories provide hidden price premiums to secure limited volumes, while others remain cautious. Therefore, scrap flows toward the highest bidders, leaving some producers facing severe shortages.

To ensure a consistent supply, market participants believe mills must raise official collection prices rather than relying on inconsistent private deals, especially since domestic scrap remains more affordable than international alternatives.

Courtesy: www.yieh.com