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Persistent weather disruptions, weak demand, and moisture risks hit Taiwan's ferrous scrap market
Weather Disruptions Limit Scrap Supply to Mills
Persistent rains across Taiwan are reducing ferrous scrap deliveries as the plum rain season disrupts transport and handling. Scrap dealers report that consistent rainfall in June is hindering supplier logistics, especially in southern Taiwan where major yards are struggling to meet volume targets. This slowdown comes despite steel mills raising purchase prices in May to encourage shipments.
Falling Rebar Prices Signal Weak Market Demand
Taiwan's domestic rebar prices declined this week, reflecting sluggish demand in the construction sector. As a result, recyclers remain cautious about dispatching material, wary of future price corrections. Southern Taiwan scrap suppliers say falling rebar values signal weakness in finished steel markets, leading to uncertainty in scrap demand forecasts. While scrap prices remain stable, suppliers fear steel mills may lower buying prices again.
Moisture Penalties Further Discourage Shipments
In addition to logistical delays, scrap suppliers face challenges from elevated moisture content due to prolonged rainfall. Water absorption raises scrap weight, triggering penalties or rejections from mills that enforce strict moisture thresholds. As a result, many recyclers are choosing to hold material rather than risk reduced payouts, further tightening supply into the domestic steelmaking sector.
ScrapInsight Editorial View:
Taiwan’s ferrous scrap market reflects broader regional risks tied to seasonal climate patterns and demand volatility. Moisture-related quality concerns and soft rebar prices may force steelmakers to revise purchase strategies or introduce moisture-adjusted pricing formulas. With Southeast Asia’s monsoon season peaking, the region’s recyclers must balance weather disruptions against the risk of price corrections. The coming weeks will test the resilience of Taiwan’s scrap value chain under dual pressure from nature and market forces.
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