Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to lift its rebar list prices and buying prices for locally-sourced scrap by another TWD 300/t ($9.8/t) respectively on week for transactions over December 12-16, a company official confirmed on Tuesday.
With the latest adjustment, Feng Hsin is offering its 13mm dia rebar at TWD 20,100/t EXW for business discussions till this Friday, up for the third consecutive week, while its buying price for local HMS 1&2 80:20 scrap has been raised to TWD 11,000/t for this week, according to the official.
One major reason for the company’s price hike was the steady climb in global scrap prices that is driving a parallel rise in production costs for all Taiwan’s local mini-mills, Mysteel Global noted.
As of December 12, the price of US-sourced HMS 1&2 80:20 material was at $365/t CFR Taiwan, rising for the third week by another $20/t on week, according to a local market source. During the same period, the price of Japan-origin H2 scrap posted a sharper increase of $35/t on week to touch a three-month high of $395/t CFR Taiwan.
Sentiment among market participants in Taiwan improved with the stronger scrap prices globally. Meanwhile, Chinese steel prices recovered with the central government’s optimized COVID policies, which also lent some support to Taiwan’s steel market, Mysteel Global learned.
For example, China’s national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 4,053/tonne ($581/t) including the 13% VAT as of December 12, higher by Yuan 86/t compared with one week before.
Shagang Group, China’s leading electric-arc-furnace producer based in East China’s Jiangsu province, decided to raise its steel scrap procurement price by another Yuan 80/t effective from December 13, to encourage more scrap deliveries and to reflect the increase in the finished steel prices. The steel giant has now hiked its scrap buying prices no fewer than three times so far this month, as Mysteel 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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