Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to cut its rebar list prices and scrap buying prices by another TWD 200-300/tonne ($6.5-9.7/t) for transactions over November 14-18 in response to the further drop in global scrap prices and the weak steel demand in the home market, a company official confirmed on Monday.
With the latest adjustment, Feng Hsin is offering its 13mm dia rebar at TWD 19,200/t EXW for business negotiations till this Friday, lower by TWD 200/t from one week before. Its buying price for local HMS 1&2 80:20 scrap has been trimmed by another TWD 300/t on week to TWD 10,000/t, according to the official.
“Global scrap prices delivered to Taiwan have been continually declining, aggravating the negative sentiment prevailing in the local market, with the poor steel demand from local end-users,” the official explained.
As of November 14, the price of US-sourced HMS 1&2 80:20 material was reported at $325/t CFR Taiwan, down for the fourth week by a sharper $20/t on week, according to a local market source. The price of Japan-origin H2 scrap had also slipped by $15/t on week to $340/t CFR Taiwan.
As for the Chinese market, scrap prices increased further this week with the limited deliveries to Chinese steel mills. As of November 14, the price index under Mysteel’s assessment reached Yuan 2,931.5/tonne ($416.3/t) on delivery and including the 13% VAT, gaining Yuan 122.8/t on week.
Shagang Group, China’s leading electric-arc-furnace steelmaker headquartered in Zhangjiagang in East China’s Jiangsu province, had raised its steel scrap procurement prices for the second time this month by another Yuan 100/t effective from November 11 to entice scrap traders and collectors to increase their deliveries, as Mysteel Global reported.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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