According to reports, the Taiwanese government is expected to lift a ban on steel billet and rebar exports and to permit shipments beginning from September 5, 2008.
Taking into consideration the inventory buildup, the sluggish domestic real estate market and the slow progress in some infrastructure projects, which have recently cut demand and reduced prices for steel bars, the Taiwanese government is expected to lift the ban in question, but maintaining control of total allocation based on last year's figures. The new regulation is to be reviewed every three months.
Experts are expecting the government to allow exports of about 170,000 mt of rebar and 90,000 mt of billet in the period up to the end of the year. Moreover, with the new regulation being effective from September 5, industry experts are predicting an export peak to take place in October or November. Thus, by the middle or the end of September rebar prices in the Taiwanese local market could see a sharp rebound.
Billet and rebar exports from Taiwan were suspended in March 5, 2008 for a period of three months, due to fears of a possible domestic shortage caused by soaring iron ore prices. Market players believe that the main philosophy behind this temporary export restriction policy was aimed at the EAFs, and that it was inspired by the sharp hike in international scrap prices as well as by the billet shortage in the regional market.