Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to lift both its rebar list prices and buying prices for locally-sourced scrap over February 18-22 after noting the rebound in global scrap prices during the Chinese New Year holiday, a company official told Mysteel Global on Friday.
With the latest adjustment, Feng Hsin is offering its 13mm dia rebar at TWD 18,600/tonne ($666/t) EXW for business till next Monday, a rise of TWD 300/t compared with the pre-holiday price, while its procurement price for locally-sourced HMS 1&2 80:20 scrap is higher by a sharper TWD 500/t at TWD 9,800/t, according to the official.
One major reason for the uptick in Feng Hsin’s rebar and scrap prices was the firm support both have gained from higher raw material prices including iron ore and scrap, Mysteel Global noted.
As of February 18, the price of US-sourced HMS 1&2 80:20 scrap in Taiwan reversed up after sliding for four weeks, seeing a significant rise of $30/t from that on February 8 to register $390/t CFR Taiwan. At the same time, that for Japan-origin H2 scrap grew steadily after the rebound over the last week prior to the CNY holiday, gaining another $35/t compared with ten days earlier to reach $410/t CFR Taiwan, a market source said.
Local scrap suppliers in Taiwan have slowed their pace of delivery after noting the stronger global scrap market, Mysteel Global learned. Some mini-mills on the island have opted to restrict their rebar sales given the low arrivals of scrap, according to Feng Hsin’s official, as local scrap dealers are preferring to hold off selling to wait for a higher sales price.
“We are confident about the demand (for rebar) in the coming days as most construction companies in Taiwan have returned to the market to purchase after resuming operations on February 17”, he added.
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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