Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to cut its rebar list price by TWD 300/tonne ($10.8/t) for sales over August 9-13, while rolling over its buying price for local scrap this week to encourage deliveries, a company official confirmed on Tuesday.
With the latest adjustment, Feng Hsin’s list price for 13mm dia rebar reaches TWD 22,900/t EXW, having remained unchanged for four weeks. The mini-mills buying price for local HMS 1&2 80:20 scrap stays the same at TWD 11,600/t, unchanged for the second week, according to the official.
Rebar sales remain depressed in Taiwan as end-users are in no hurry to place new orders while the global scrap market stays weak. “We didn’t receive any new orders last week as the steady rains from Typhoon Lupit disrupted almost all business,” he said.
As of August 9, the price of US-sourced HMS 1&2 80:20 scrap had slipped for the third week to $438/t CFR Taiwan, losing another $7/t on the week, and that of Japan-origin H2 scrap dropped by $17/t on week to $460/t CFR Taiwan after the short-lived pause over the prior week, local market sources said.
Feng Hsin still decided to retain its buying price for local scrap to increase its stocks, as “the price (for locally-sourced scrap) is relatively lower compared with imported scrap for the time being,” the official told Mysteel Global.
However, Feng Hsin, headquartered in Taichung, Central Taiwan, will lower its procurement price for domestic scrap accordingly if scrap prices in the global market weaken further in the coming term.
Steel mills in China also lowered their scrap procurement prices to respond to the declines in domestic steel prices and the lower scrap consumption. Shagang Group, China’s leading electric-arc-furnace (EAF) steelmaker headquartered in East China’s Jiangsu province, has trimmed its steel scrap procurement price by another Yuan 50/tonne ($7.7/t) for deliveries starting August 10 after its prior cut last Friday, as Msyteel Global reported.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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