- Weak rebar demand prompts scrap price cuts
- Global scrap, Chinese rebar prices also soften
Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to cut its rebar list prices and procurement prices of local scrap for transactions over 8-12 September in response to weak rebar demand and a further decline in global scrap prices, according to a company official.
With the latest adjustment, the Taiwanese mini-mill is offering its 13-mm dia rebar at TWD 16,700/tonne (t) ($550/t) exw for business discussions till this Friday, down for the second week by TWD 300/t ($10/t) w-o-w, and its buying price for local HMS 80:20 scrap sits at TWD 7,800/t ($258/t), with cuts of TWD 200/t ($7/t) on Monday and TWD 300/t ($10/t) last Thursday, the official confirmed.
The support for Taiwan’s rebar prices from the cost side weakened further with the continuous fall in prices of global scrap delivered to Taiwan, Mysteel Global learnt.
As of 8 September, prices of US-sourced HMS 80:20 were at $305/t CFR Taiwan, falling for the second week by $3/t w-o-w, while that of Japan-origin H2 scrap also declined by $3/t w-o-w to $310/t CFR Taiwan, according to a local market source.
In parallel, mini-mills in Taiwan had to make some concessions in their offers for rebar in order to facilitate sales, given the lacklustre demand from local end-users.
Meanwhile, rebar prices in the Chinese mainland have been hovering at a low level recently amid weak market fundamentals. Demand from end-users has not seen a significant recovery due to the lingering high temperatures and frequent heavy rains across many regions of the country. These factors also put some pressure on Taiwan’s steel market, Mysteel Global noted.
As of 8 September, China’s national prices of HRB400E 20-mm dia rebar, a bellwether of the country’s domestic steel-market sentiment, were assessed by Mysteel at RMB 3,282/t ($461/t), including the 13% VAT, lower by RMB 15/t ($2/t) from one week ago.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint
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