Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to roll over its rebar list price and buying price for locally-sourced scrap further over June 15-18 after noting the stability of scrap prices in the global market, a company official confirmed on Tuesday.
This week is a short working week in Taiwan, as the island was closed on Monday due to the Dragon Boat Festival on June 14, Mysteel Global learned.
For transactions till this Friday, Feng Hsin’s list price for 13mm dia rebar will be unchanged at TWD 22,700/tonne ($821/t) EXW for the fourth week, and the mini-mill, headquartered in Taichung, Central Taiwan, continues to pay TWD 11,300/t for locally-sourced HMS 1&2 80:20 scrap, according to the official. This price hasn’t changed since the end of May.
Scrap prices in the global market were generally stable over the past week, giving some support to Taiwan’s steel market and encouraging local mini-mills to hold their rebar list prices again to monitor market changes in the near term, Mysteel Global was told.
As of June 15, the price of US-sourced HMS 1&2 80:20 scrap had edged up $1/t on week to $442/t CFR Taiwan, and that of Japan-origin H2 scrap had gained $3/t on week to $505/t CFR Taiwan, a local market source said.
Although some end-users returned to the market to replenish some steel products last week, overall sales for rebar remained mediocre given the limited concessions the steel producers were prepared to make on their prices.
“Mini-mills in Taiwan are not willing to cut their list prices,” Feng Hsin’s official explained. “This is because their finished steel production will be lower over June-September due to the power restrictions on local EAF mills to ensure stable electricity supplies for households during that period.”
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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