Taiwan: Feng Hsin raises rebar prices, increases local scrap purchase rates

• Sustained uptrend in global scrap prices drives move
• Chinese rebar prices inch up on improving demand

Mysteel Global: Feng Hsin Steel, Taiwan’s leading rebar producer based in Taichung, has opted to raise both its rebar list prices and local scrap procurement rates once again for transactions scheduled between 23-27 March, citing the sustained uptrend in global scrap prices, a company official reported.

Following the latest revision, the mini-mill is quoting its 13-mm rebar at TWD 18,300/tonne (t) ($572/t) EXW for deals through this week, marking a fourth straight weekly increase of TWD 300/t ($9/t). Concurrently, its purchase price for domestic HMS 80:20 scrap has climbed to TWD 9,400/t ($294/t), reflecting a weekly gain of TWD 200/t ($6/t), the official confirmed.

According to the company, the ongoing rise in international scrap prices has been the key factor behind the repeated hikes, as elevated import costs continue to push up production expenses for local mini-mills.

As of 23 March, US-origin HMS 80:20 scrap was assessed at $340/t CFR Taiwan, up $7/t w-o-w, while Japanese H2 scrap was reported at $350/t, increasing by $2/t over the same period, a Taiwan-based market source noted.

At the same time, rebar prices in mainland China have shown overall firmness in recent days, supported by improving sentiment and a gradual pickup in downstream demand.

Mysteel’s data indicated that China’s national price for HRB400E 20mm rebar, a key gauge of domestic steel market sentiment, stood at RMB 3,346/t ($485/t) including 13% VAT as of 23 March, edging up by RMB 8/t ($1/t) from a week earlier.

Trading activity in the physical construction steel market also improved, with the average daily volume of rebar, wire rod, and bar-in-coil across 237 monitored trading houses nationwide reaching 96,134 tonnes over 17 March-23 March, up by 1,623 t/d w-o-w.

While end-user demand in mainland China is still recovering at a modest pace, firm trends in key steelmaking raw materials have provided cost-side support to finished steel prices, Mysteel Global highlighted.

For instance, Mysteel SEADEX 62% Australian Fines remained stable above $110/dmt over the past week, recorded at $110.75/dmt CFR Qingdao on 23 March, up by $0.7/dmt week-on-week. Meanwhile, several coke producers have sought to lift their selling prices by RMB 50-55/t during the week.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.