- Local scrap buying prices raised in Taiwan
- Taiwanese mini-mills seek higher scrap inflows
Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to roll over its rebar list price for transactions over 26 January 26-30 January, while hiking its buying price of local steel scrap by TWD 200/tonne (t) ($6.3/t) in response to the higher prices in global scrap delivered to Taiwan, according to a company official.
For business discussions till this Friday, the Taiwanese mini-mill continues to offer its 13mm-diameter rebar at TWD 16,600/t ($532/t) exw, while its buying price for local HMS 80:20 scrap reaches TWD 8,600/t ($275/t) with the latest price adjustment, the official confirmed.
After noting the further recovery in global scrap prices delivered to Taiwan, mini-mills on the island intended to raise their procurement prices of local scrap to encourage deliveries.
As of 26 January, the price of US-sourced HMS 80:20 scrap was reported at $312/t CFR Taiwan, rising for the third consecutive week by $4/t on week, while the price for Japanese H2 scrap came in at $317/t CFR Taiwan, higher by $2/t from the prior week, according to a local market source.
On the other hand, Feng Hsin still chose to roll over its rebar list prices to monitor market changes, as rebar demand from local end-users was not so strong, Mysteel Global was told.
In parallel, rebar prices on the Chinese mainland have softened recently due to a further contraction in downstream demand, aggravating the wait-and-see sentiment in Taiwan’s steel market, Mysteel Global noted.
As of 26 January, China’s national price of HRB400E 20mm rebar-an indicator of domestic steel-market sentiment-was assessed by Mysteel at RMB 3,323/t ($478/t) including 13% VAT, falling by RMB 13/t ($2/t) from one week ago.
Mysteel’s other survey showed that over 20 January 20-26 January, daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 trading houses throughout China averaged 75,971 t/day, sliding further by 13.4% on week.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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