Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to lift its buying price for locally-sourced scrap and its list price for rebar by another TWD 300/tonne ($10/t) over June 15-19, thanks to the further increase in global scrap prices and better rebar sales in Taiwan, a company official confirmed on Monday.
With the latest adjustments, the mini-mill’s buying price for locally sourced HMS 1&2 80:20 scrap is at TWD 7,600/t, a five-month high, while its list price for 13mm dia rebar climbs to a three-month high of TWD 15,200/t ex-works for this week’s bookings. The Taichung, Central Taiwan-based steelmaker had enjoyed a continuous rally in sales since last week, according to the official.
One major reason for Feng Hsin’s decision to raise the two prices again this week was to reflect the strength of the global scrap market, though scrap consumption in Taiwan had shrunk with the on-going power supply rationalization scheme commenced June 1 and which runs till end-September, Mysteel Global was told.
As of June 15, the price of US-sourced HMS 1&2 80:20 scrap, a key reference price for Taiwan’s scrap and rebar markets, moved up for a third consecutive week to $250/t CFR Taiwan, gaining another $10/t on week and recording a new high after the Chinese New Year holiday in late January. The price for Japanese H2 scrap witnessed a larger week-on-week rise of $19/t to reach $273/t CFR Taiwan, the highest since mid-January, Mysteel Global learned from a local source.
“Recently Japanese scrap prices have increased rapidly, mainly due to the low generation in Japan and the gradual resumption of demand among steel producers in Asia and Southeast Asia regions,” Feng Hsin’s official explained.
However, the price of scrap imported from Japan is expected to approach a peak in the near term as “demand for scrap may decline with slipping finished steel production amid the heart of summer,” the official added – even though rebar sales have not shown any sign of shrinking for the time being.
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