Despite the continuing strength of the global scrap market, Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to roll over its rebar list prices and local scrap buying price for new business over November 9-13 after raising the two prices by TWD 600/tonne ($21/t) respectively over the past two weeks, a company official confirmed on Tuesday.
Therefore, for contracts till this Friday, the mini-mill headquartered in Kaohsiung in south Taiwan, continues to offer its 13mm dia rebar at TWD 15,900/t EXW, the same level as one week before, while its procurement price for locally-sourced HMS 1&2 80:20 scrap remains at TWD 7,900/t, according to the official.
Scrap prices in the global market strengthened further over the past week, Mysteel Global noted. As of November 9, the price of US-sourced HMS 1&2 80:20 scrap in Taiwan had climbed for the fourth successive week to reach a 19-month high of $292/t CFR Taiwan, up $7/t from one week before. That of Japanese H2 scrap saw another on-week rise of $5/t to touch $305/t CFR Taiwan, the highest since mid-June 2019, according to the Feng Hsin official.
“Our rebar sales were mediocre last week, as the consecutive hikes over the prior two weeks had brought rebar prices to a high level, encouraging building contractors to wait-and-see, rather than accumulate stocks,” the official explained.
The Taiwan mini-mill is in no hurry to buy more scrap for the time being, as local scrap suppliers are very active in making deliveries given the uncertainties in the global scrap market. “They (local scrap suppliers) are not sure whether the rally in global scrap prices will continue in the coming term,” he added.
Last Thursday, Shagang Group (Shagang), China’s largest electric-arc-furnace (EAF) steelmaker in East China’s Jiangsu province, raised its scrap procurement price again by Yuan 100/tonne ($15.1/t) effective November 5, just one week after the previous rise and providing more proof of the domestic steel mills’ good appetite for scrap, as Myteel Global reported.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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