Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to keep its rebar list prices and its buying price for locally-sourced scrap stable again over September 7-11, even though scrap prices in the global market strengthened further recently, a company official confirmed on Tuesday.
Consequently, for business till this Friday, the mini-mill headquartered in Kaohsiung in south Taiwan, is still offering its 13mm dia rebar at TWD 15,300/tonne ($521/t) EXW, and its procurement price for locally-sourced HMS 1&2 80:20 scrap is still at TWD 7,600/t. Both prices have been rolled over for a second straight week, Mysteel Global notes.
As of September 7, the price of US-sourced HMS 1&2 80:20 scrap in Taiwan moved up further for the ninth week to reach $280/t CFR Taiwan, a 13-month high after another on-week rise of $7/t. At the same time, Japanese H2 scrap also returned to its upward trajectory after recording a slight retreat over the prior week, gaining $7/t on week to reach $290/t CFR Taiwan, the highest since mid-August 2019, a market source in Taiwan told Mysteel Global.
Despite the strong scrap prices internationally, Feng Hsin still decided to keep its buying price for locally-sourced scrap stable. “We are in no hurry to purchase scrap for the time being as one of our rebar mills is undergoing annual maintenance,” the company official explained.
At the same time, the company’s rebar sales have not seen any significant improvement over the past week, as demand from end-users remained lackuster, Mysteel Global learned. “Rebar stocks held by local end-users stay at a high level, encouraging them to wait and see for any price change in the coming term,” he added.
Scrap prices in China have been trending upward recently on support of growing demand, which encouraged major steel producers to lift their scrap buying prices accordingly.
For example, Shagang Group, China’s largest electric-arc-furnace steelmaker in East China’s Jiangsu province, has decided to raise its steel scrap procurement price by Yuan 50/tonne ($7.3/t) for deliveries starting September 4 to secure more supplies when availability is rather low, as Mysteel Global reported.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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