Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Kaohsiung in south Taiwan, has decided to raise its rebar list prices and buying price for locally-sourced scrap by TWD 300/tonne ($10.5/t) respectively for the period over October 26-30 to reflect the continuous growth in global scrap prices, a company official told Mysteel Global.
For business till this Friday, Feng Hsin is offering its 13mm dia rebar at TWD 15,600/t EXW, higher by TWD 300/t from one week before, while its procurement price for locally-sourced HMS 1&2 80:20 scrap increases by the same margin to TWD 7,600/t, according to the official. Prior to this adjustment, the mini-mill had rolled over the two prices for three successive weeks, Mysteel Global noted.
One major reason behind Feng Hsin’s price hike was the strength of scrap prices internationally, which persuaded mini-mills in Taiwan to lift their buying prices for locally-sourced scrap accordingly.
“Demand for scrap is usually strong in the last quarter in Taiwan – the seasonal peak period of steel consumption – as many local contractors will speed up their pace of construction before the end of the year,” the company official explained, adding that the growth in global scrap prices had been anticipated by the market.
As of October 26, the price of US-sourced HMS 1&2 80:20 scrap in Taiwan continued rising for a second week to reach $278/t CFR Taiwan, with the on-week growth jumping to $8/t from the prior week’s rise of $2/t. That for Japanese H2 scrap moved up further for the fourth straight week, increasing by another $7/t on week to $295/t CFR Taiwan, according to the Feng Hsin official.
Shagang Group, China’s largest electric-arc-furnace mill, also raised its steel scrap procurement price by Yuan 50/tonne ($7.5/t) effective October 24 to encourage more deliveries. With the latest adjustment, the company headquartered in Zhangjiagang city, East China’s Jiangsu province, is paying collectors Yuan 2,740-2,800/t for domestically-produced HMS grade scrap including delivery and the 13% VAT, as Mysteel Global reported.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
Leave a Reply