Southern Taiwan steel mills are facing severe supply gaps as scrap and billet inventories fail to meet rebounding demand. Many electric arc furnace plants reduced purchases in the second half of last year, leaving them unable to increase output after the price recovery in January. Therefore, southern mills face deficits in small-sized rebar, with distributors reporting that #3 and #4 billet stocks are insufficient for production.

In spite of rising orders, mills struggle to acquire domestic scrap even at higher costs. Some producers now prioritize direct users, leaving distributors waiting.

This scarcity makes it difficult for plants to bridge the gap between current production capabilities and outstanding delivery obligations. Faced with client complaints and low stock levels, mills remain hesitant to accept new orders regardless of favorable pricing.