Taiwan Feng Hsin’s rebar, scrap prices up further by $6.8/t

Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to hike its rebar list prices and buying price for locally-sourced scrap by another TWD 200/tonne ($6.8/t) over August 3-7, as scrap prices in the global market have mounted further, a company official told Mysteel Global on Tuesday.

After the adjustment, the mini-mill headquartered in Kaohsiung in south Taiwan, is offering its 13mm dia rebar at TWD 15,000/t EXW till this Friday, and paying scrap collectors TWD 7,300/t for locally-sourced HMS 1&2 80:20 scrap, according to the official.

“The major reason for our decision is to reflect the steady increase in global scrap prices,” Feng Hsin official explained.

As of August 3, the price of US-sourced HMS 1&2 80:20 scrap was assessed at $250/t CFR Taiwan, higher for a fourth consecutive week and up by another $5/t on week. During the same period, the price of Japanese H2 scrap witnessed a week-on-week climb of $4/t to reach $257/t CFR Taiwan. Both prices were the highest since the end of June, Mysteel Global notes.

Rebar sales in Taiwan last week were not as good as before, as many local buyers slowed down their pace of buying and adopted a wait-and-see stance after noting the increase in rebar selling prices, the company official explained.

“Some mini-mills in Taiwan may concede a little of their margin in actual transaction negotiations if demand from buyers remains lackluster this week,” he added.

Taiwanese construction steel demand is generally better than at the same time last year, thanks to the continuing good weather without the frequent disruptions of typhoons at this time of year. At the same time, local government measures to offset some impact of the COVID-19 outbreak also boosted Taiwanese consumption for steel, Mysteel Global learned.

This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.