Taiwan: Feng Hsin raises rebar, scrap prices as global market strengthens

• Feng Hsin raises scrap buying prices for 1st time in 6 weeks
• Chinese rebar prices rise on improved demand, higher costs

Taiwan’s largest rebar producer, Feng Hsin Steel, headquartered in Taichung in central Taiwan, has decided to raise its rebar list price and buying price of local scrap by TWD 200/tonne (t) ($6/t) each on week for transactions over 31 August-4 September, according to a company official.

With the latest adjustment, the Taiwanese mini-mill is offering its 13mm-diameter rebar at TWD 17,800/t ($560/t) exw for business discussions through this Friday, and its buying price for local HMS 80:20 scrap also climbs to TWD 9,400/t ($296/t), the official confirmed.

This marks Feng Hsin’s first hike in its buying price of local scrap after keeping it stable for six consecutive weeks, as prices of global scrap delivered to Taiwan have edged higher recently, fueling positive expectations for scrap prices on the island, Mysteel Global noted.

As of 31 August, the US-origin HMS 80:20 scrap price came in at $332/t CFR Taiwan, rising by $2/t on week after a prolonged period of stability since late July. No quotation for Japanese H2 scrap was available over the past week, according to a market source in Taiwan.

Meanwhile, rebar prices in the Chinese mainland have strengthened recently, supported by market expectations for a seasonal recovery in end-user demand and firmer prices of major steelmaking raw materials such as iron ore and coke. This also restored market confidence among mini-mills in Taiwan and encouraged them to raise their rebar list prices accordingly.

As of 31 August, China’s national price of HRB400E 20mm rebar was assessed by Mysteel at RMB 3,350/t ($498/t) including the 13% VAT, jumping by RMB 79/t ($12/t) on week and touching the highest level since 22 Jun.

On the cost front, Mysteel SEADEX 62% Australian Fines climbed to $101/dmt CFR Qingdao by 31 August, higher by $2/dmt from one week before, while the national composite coke price under Mysteel’s assessment jumped by RMB 180.9/t on week to reach RMB 1,921/t ($286/t) including the 13% VAT.

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