Taiwan's ferrous scrap imports fell in April as the upcoming summer lull, which encompasses higher electricity rates and electricity restrictions in May, led to cautious procurement activities by local steelmakers. Marginally higher spot scrap prices in early February also suppressed buying appetite, trade sources said. Loading and delivery for US containerised scrap is typically set 6-10 weeks ahead and the spot price for HMS 1/2 80:20 containerised scrap from the US west coast was as high as $375/t on 1 February, but tapered off to $360/t cfr by 29 February.

"Scrap buyers will usually stay by the sidelines when prices start falling because there is a common belief that prices will continue falling, and they don't want to be caught buying at higher prices this week when they could potentially get it lower next week," a trader said. The US was the biggest supplier of scrap metals to Taiwan, accounting for 45.4% of the net import volume, followed by Japan at 20.4%. Other major suppliers of scrap to Taiwan include the Dominican Republic and Australia.

Taiwan's imports in May and June are expected to be suppressed as it enters a seasonal lull and as electricity restrictions kick in on 15 May, with mills expected to cut work shifts and reduce steel production. The typhoon season in May will also affect steel demand as rainy weather will impede local construction works.