Feng Hsin Steel, Taiwan’s largest rebar producer with the works in Taichung, Central Taiwan, has raised its buying price for locally-sourced scrap by TWD 300/tonne ($10/t) over June 8-12 to reflect soaring global scrap prices, and concurrently it has had to raise rebar list price by the same degree, a company official confirmed on Monday.
With the latest adjustments, the mini mill is going to pay TWD 7,300/t for locally-sourced HMS 1&2 80:20 scrap, and its list price for 13mm dia rebar is at TWD 14,900/t ex-works for this week’s booking, according to the official.
This has been the first time for Feng Hsin to raise both the prices after having kept them unchanged for the prior five weeks, Mysteel Global notes.
The consistent price rise in the global scrap market and remaining healthy rebar sales in the local market in past few weeks have enabled the Taiwanese mills including Feng Hsin to raise their prices accordingly, according to market sources.
Steel producers in Taiwan usually have to reduce their output over June-September because of the power supply rationalization during the hot and humid summer days while demand will ease too when the high temperature and heavy rainfalls hassle Taiwan in summer, Mysteel Global notes.
As of June 8, the price of US-sourced HMS 1&2 80:20 scrap, a key reference price for Taiwan’s scrap and rebar markets, rose another $5/t on week to its three-month high of $240/t CFR Taiwan, or up $25/t on month.
The price for Japanese H2 scrap surged to $254/t CFR Taiwan, up more substantially by $12/t on week or $31/t on month, according to the Taiwanese market sources. Japan’s scrap generation has been at low levels because of the affection of the pandemic since early April, according to market sources from Japan and Taiwan.
Apart from the scrap, iron ore prices have been on the rise too, which has lent support to scrap prices in general, and as of June 8, Mysteel’s SEADEX 62% Fe Australian Fines was assessed at $105.65/dmt CFR Qingdao, up $5.1/dmt on week or $17.65/dmt on month.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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