Taiwan: Feng Hsin lowers rebar, scrap prices amid weak demand

• US scrap prices fall for seventh consecutive week
• Chinese steel weakness adds pressure on Taiwan market

Taiwan’s largest rebar producer, Feng Hsin Steel, headquartered in Taichung in central Taiwan, has decided to cut its rebar list price and local scrap purchasing price further by TWD 200-300/tonne (t) ($6-9/t) for transactions over 13 July -17 July given the persistent weakness in global scrap prices and poor steel demand from local end-users, according to a company official.

For business discussions through this Friday, Feng Hsin is offering its 13mm-diameter rebar at TWD 17,600/t ($547/t) EXW, down by TWD 300/t ($9/t) from one week before, while the mini-mill’s buying price for local HMS 80:20 scrap sits at TWD 9,200/t ($286/t) with a TWD 200/t ($6/t) cut from the week prior, the official confirmed.

One major reason for Feng Hsin’s further price cuts was the persistently softening prices of global steel scrap delivered to Taiwan, which undermined the cost support for local steel prices and aggravated negative market sentiment, Mysteel Global learned.

As of 13 July, the US-origin HMS 80:20 scrap was reported at $335/t CFR Taiwan, falling for the seventh consecutive week by $5/t on week and recording the lowest level since late March. Meanwhile, the price of Japan-origin H2 scrap also slid by a total of $33/t from early June to $355/t CFR Taiwan by the same day, according to a market source in Taiwan. No quotation for Japanese H2 scrap had been available during the past month, as reported.

Besides, rebar demand from Taiwan’s end-users remained weak due to the recent Typhoon Bavi, which had brought strong winds and heavy rain to the northern areas of the island. This also prompted local mini-mills to cut their rebar list prices, Mysteel Global noted.

Rebar prices in the Chinese mainland extended the downtrend in the past week amid thinning demand during the summer off-season. High temperatures and frequent heavy rainfall across much of the country disrupted outdoor construction activity and dampened steel consumption. As of 13 July, China’s national price of HRB400E 20mm rebar was assessed by Mysteel at RMB 3,275/t ($484/t) including 13% VAT, down by RMB 10/t ($1/t) from one week earlier.

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