After the adjustment, the mini-mill headquartered in Kaohsiung, in south Taiwan, is offering its 13mm dia rebar at TWD 14,800/t EXW for the business till this Friday, and its procurement price for locally-sourced HMS 1&2 80:20 scrap is at TWD 7,100/t, according to the official.
Scrap prices in the global market have increased steadily over the past three weeks where the total rise has exceeded $10/t – a heft which mini-mills in Taiwan felt compelled to reflect in their scrap buying prices, Mysteel Global learned.
As of July 27, the price of US-sourced HMS 1&2 80:20 scrap was at $245/t CFR Taiwan, gaining another $5/t and taking the total increase to $13/t from the start of this month. Similarly, the price of Japanese H2 scrap experienced a week-on-week climb of $3/t to $253/t CFR Taiwan, jumping by $18/t from three weeks earlier, according to market source in Taiwan.
Besides, rebar sales in Taiwan performed well recently without the frequent disruptions of typhoons at this time of year, giving local steelmakers some confidence to lift their rebar selling prices. At the same time, to give the country’s economy a boost, local authorities have taken a series of measures to offset some impacts of the COVID-19 spread. These policies are driving Taiwanese demand for steel, particularly of longs, a market source in South Taiwan said.
Steel supply in Taiwan usually declines in summer as all EAF mills are requested to rationalize their power consumption over June-September to ensure enough electricity for household use. Therefore, many local mini-mills, including Feng Hsin, often conduct annual maintenance on their rolling mills during that period, as Mysteel Global reported.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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