Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to roll over its rebar list prices and its procurement price for locally-sourced scrap over February 8-17 to monitor market changes during the Chinese New Year (CNY) holiday, a company official confirmed on Tuesday.
The mini-mill still announced its pricing policy, despite that Taiwan will be closed over February 10-16 for CNY celebrations, Mysteel notes. “We will resume offering new list prices on February 18, the second working day (in Taiwan) after the CNY break,” the official said.
Therefore, for its business till February 17, Feng Hsin continues to offer its 13mm dia rebars at TWD 18,300/tonne ($654/t) EXW, unchanged from the prior week. In the two weeks previous, the mill had slashed its bar prices by a total of TWD 1,600/t, as Mysteel Global reported.
For its scrap purchases this week, Feng Hsin’s buying price for locally-sourced HMS 1&2 80:20 scrap stays unchanged too at TWD 9,300/t, after the larger fall of TWD 1,900/t over the prior two weeks, the official confirmed.
“For the time being, we’re in no hurry to adjust the two prices, given the divergence in global scrap prices and the upcoming CNY break,” the official explained, pointing out that trading activity will be suspended during the one-week long holiday.
Scrap prices in the global market showed some divergence over the past week. As of February 8, the price of US-sourced HMS 1&2 80:20 scrap in Taiwan had declined for the fourth consecutive week to reach $360/t CFR Taiwan, losing another $10/t, while that for Japan-origin H2 scrap had recovered $17/t on week to $375/t CFR Taiwan and ending the continuous drop since mid-January, Mysteel Global learned.
Mini-mills in Taiwan aim to hold their rebar list prices to wait-and-see, as they expect better market fundamentals after the CNY holiday. “Demand usually performs well after the (CNY) break,” another market source in Taiwan told Mysteel Global.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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