Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to raise both its rebar list prices and its buying prices for locally-sourced scrap by another TWD 200/tonne ($7.1/t) for the business over March 8-12 to reflect the higher scrap prices in the global market, a company official confirmed.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 19,700/t EXW, the company’s highest price since late January. For this week too, its price for locally-sourced HMS 1&2 80:20 scrap has been lifted to TWD 11,000/t for business till this Friday, according to the official.
This is the fourth time for Feng Hsin to raise its rebar list prices and scrap buying prices after the Chinese New Year holiday over February 10-16, Mysteel Global notes, with the total increment now reaching TWD 1,400-1,700/t.
The further rise was mainly driven by the robust scrap prices internationally. As of March 8, the price of US-sourced HMS 1&2 80:20 scrap had moved up further for a fourth week to reach $435/t CFR Taiwan, gaining another $5/t from the prior week, while that of Japan-origin H2 scrap took a pause after growing by $92/t over the past four weeks. The Japan H2 price is unchanged on week at a two-month high of $450/t CFR Taiwan, the market source said.
Although March and April are the traditional peak months for steel consumption in Taiwan, local end-users are not active in placing new orders, Feng Hsin’s official said. “They would like to wait and see, now that finished steel prices have reached their highest point after the CNY holiday,” he told Mysteel Global. “The rebar list price (for sales over this week) is only TWD 200/t lower compared with the recent high in mid-January,” 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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