Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to keep its rebar list prices and procurement prices for locally-sourced scrap unchanged for a fourth week during June 13-17, given the uncertainties facing global scrap markets and the lackluster demand from local end-users, a company official confirmed on Tuesday.
Consequently, for business discussions till this Friday, the mini-mill continues to offer its 13mm dia rebar at TWD 23,300/tonne ($785/t) EXW. Its buying price for local HMS 1&2 80:20 scrap also stays the same at TWD 13,000/t this week, according to the official.
Scrap prices in the global market diverged last week, aggravating the wait-and-see sentiment of Taiwan’s downstream buyers, Mysteel Global learned.
As of June 13, the price of US-sourced HMS 1&2 80:20 scrap was reported at $440/t CFR Taiwan, up $5/t on week after holding at $435/t for three weeks, while the price of Japan-origin H2 scrap slid further to $465/t CFR Taiwan, losing another $10/t from one week before, according to a market source.
Finished steel transactions in Taiwan remained scarce last week, as many end-users were in no hurry to place new orders. “They are waiting for global scrap prices to bottom,” the company official explained.
Chinese steel scrap prices softened over the past week, as major domestic steelmakers lowered their procurement prices after noting the retreat in steel prices and the increased deliveries to their works, Mysteel Global noted.
For example, Mysteel’s steel scrap price index came in at Yuan 3,777/tonne ($561/t) on delivery and including the 13% VAT as of June 13, down Yuan 8.3/t on week.
Shagang Group, China’s leading electric-arc-furnace steelmaker headquartered in Zhangjiagang city, East China, also announced Tuesday that it was trimming its steel scrap procurement price by Yuan 50/t effective June 14, as Mysteel Global reported.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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