Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to trim its rebar list prices by another TWD 400/tonne ($12.6/t) on week for local sales over September 26-30, a company official confirmed on Tuesday. Its buying price for locally-sourced scrap stays stable, given the divergence in global scrap prices, however.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at a six-week low of TWD 20,000/t EXW for business discussions till this Friday, while its buying price for local HMS 1&2 80:20 scrap stays unchanged on week at TWD 10,600/t, according to the official.
Feng Hsin’s decision was mainly to reflect lackluster rebar sales in the local market and differing price trends in the global scrap market, Mysteel Global learned.
As of September 26, the price of US-sourced HMS 1&2 80:20 scrap was reported at $355/t CFR Taiwan, softening for the third week by another $5/t on week, while the price of Japan-origin H2 scrap reversed up slightly by $5/t on week to $390/t CFR Taiwan, ending the decrease over the prior two weeks, a local market source told Mysteel Global.
Although Taiwan entered the traditional peak season for steel consumption this month, many local end-users were not active in buying more steel products after their previous replenishment.
However, the mini-mill has rolled over its buying price for local scrap this week to encourage deliveries, as scrap consumption among local mini-mills may increase in the weeks ahead with the end of Taiwan’s annual power supply rationalization scheme for summer, Mysteel Global noted.
As for Chinese scrap market, the price index under Mysteel’s assessment decreased by Yuan 32/tonne ($4.5/t) on week to Yuan 3,130.4/t as of September 26. China’s leading electric-arc-furnace maker, Shagang Group, had cut its steel scrap procurement prices by Yuan 10-70/t effective September 22 in response to softening Chinese steel prices and the increase in its scrap stocks, as Mysteel Global reported.
Written by Nancy Zheng, zhengmm@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Leave a Reply