Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to raise its rebar list price and its buying price of locally-sourced scrap for the second week over July 5-9 to encourage scrap deliveries, a company official confirmed on Monday.
With the latest adjustment, Feng Hsin’s list price for 13mm dia rebar will be TWD 23,200/tonne ($832/t) EXW for sales till this Friday, higher by another TWD 200/t on week after the prior week’s TWD 300/t rise.
However, its actual rebar sales price for this week will be TWD 400/t higher from last week, the official explained, as “we have cancelled the discount of TWD 200/t we offered to local buyers during last week.”
The mini-mill headquartered in Taichung, Central Taiwan, will also be paying scrap collectors TWD 11,900/t for locally-sourced HMS 1&2 80:20 scrap, up TWD 300/t on week or by TWD 600/t over the fortnight, according to the official.
Although the mini mill decided to raise its rebar list price further this week, rebar demand in Taiwan is not too strong, Mysteel Global learned.
“Mediocre volume (in rebar sales) is a satisfactory result for the time being when the price is hovering at a more than 10-year high,” the official said, adding that no one wants to build up stocks at such a high price and will usually buy only to fulfil their immediate needs.
Prices of imported scrap in the Taiwan market followed different trends over the past week, with the price of US-sourced HMS 1&2 80:20 scrap, for example, recovering to $460/t CFR Taiwan as of July 5, up $2/t on week after the prior week’s dip. On the other hand, that of Japan-origin H2 scrap moved down further for the second week but at the much slower pace of just $1/t on week to $497/t CFR Taiwan, as against the previous on-week fall of $17/t, a local market source said.
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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