Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to lift its buying price for locally sourced steel scrap for the October 21-25 week after rolling this price over during the prior two weeks, a company official confirmed on October 22. The mini-mill is keeping its rebar list price stable for a third straight week, however.
After the latest adjustment, Feng Hsin’s purchasing price for locally-sourced HMS 1&2 80:20 scrap reaches TWD 7,100/tonne ($232/t), higher by TWD 200/t week on week, while the steelmaker will continue to sell its 13mm dia rebar at TWD 15,500/t over October 21-25, according to the official.
“We decided to raise our buying price (for local scrap) as scrap prices in the global market have shown some signs of recovery over the past week and lent some support to Taiwan’s scrap market,” the official commented.
As of October 21, the price of US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan’s scrap and rebar markets, was at $233/t CFR Taiwan, reversing up by $8/t week on week after declining by a total of $55/t since early August. Meanwhile, the price of Japan-origin H2 scrap also marked a week-on-week rebound of $5/t to reach $245/t CFR Taiwan as of Monday, Feng Hsin’s official disclosed.
The rise in international steel scrap prices, the first for the past two months, had a noticeable effect on Taiwan’s steel market and improved market sentiment there, Mysteel Global understands.
“Rebar sales performed well recently, with buyers replenishing after prices reached such a low level,” Feng Hsin’s official said, adding that the mini-mill has canceled the discount it had been offering to customers previously in actual transactions, even though its list price still remains unchanged compared with last week.
¬ Inputs by Mysteel
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