Taiwan: Feng Hsin raises rebar prices as scrap costs remain firm

• US HMS 80:20 prices rise $5/t w-o-w, H2 prices stable 
• Chinese rebar prices stable on pre-holiday restocking 

Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to raise its rebar list price by TWD 200/tonne (t) ($6/t) for business negotiations over 21-24 September, while rolling over its buying price for local scrap after a TWD 200/t ($6/t) hike over the prior week, according to a company official.

It is a short working week in Taiwan due to the public holiday on 25 September, Friday, to celebrate the Mid-Autumn Festival, Mysteel Global noted.

With the latest adjustments, the Taiwanese mini-mill is offering its 13mm-diameter rebar at TWD 18,300/t ($578/t) exw for business discussions through this Thursday, while the company’s buying price for local HMS 80:20 scrap stays unchanged at a three-month high of TWD 9,800/t ($309/t), the official confirmed.

Feng Hsin’s decision to hike its rebar list price is mainly aimed at reflecting elevated production costs, as prices of global steel scrap delivered to Taiwan remain firm.

As of 21 September, the US-origin HMS 80:20 scrap price was reported at $344/t CFR Taiwan, rising for the fourth straight week by $5/t on week, while the price of Japan-origin H2 scrap stayed at S358/t CFR Taiwan, the same level as one week before, according to a market source in Taiwan.

Rebar prices in the Chinese mainland have been rangebound recently, mainly supported by the replenishment by some end-users ahead of the Mid-Autumn Festival on 25 September and the National Day holiday over 1-7 October. However, many participants stay cautious about the domestic steel market outlook after the holidays, capping further rises in spot rebar prices, Mysteel Global learned.

China’s national price of HRB400E 20mm rebar under Mysteel’s assessment came in at RMB 3,316/t ($495/t) including the 13% VAT on 21 September, up by a tiny RMB 1/t on week.

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