- Rebar prices unchanged amid weak end-user demand
- Local scrap prices raised to boost supply
Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to roll over its rebar list price again for business negotiations over 5 January-9 January, a company official has confirmed, but has raised its buying price for local scrap by TWD 200/tonne (t) ($6/t) for transactions this week its first scrap price hike since late November.
With the latest adjustment, the mini-mill continues to offer its 13mm-diameter rebar at TWD 16,400/t ($521/t) Exw, the same level as the previous week, while its buying price for local HMS 80:20 scrap now stands at TWD 8,400/t ($267/t), the official confirmed.
Due to last week’s New Year holidays in many markets, there were no quotes for US-sourced HMS 80:20 scrap or for Japan-origin H2 scrap over the past week, according to a local market source.
However, Feng Hsin decided to lift its procurement price of local scrap to encourage deliveries, Mysteel Global noted. On the other hand, it decided to hold its rebar list prices again in response to the lackluster demand from end-users.
Rebar prices on the Chinese mainland have retreated slightly as demand from end-users shrank further amid the cold winter in northern China. This also persuaded the Taiwanese mini-mills to hold its rebar list prices to monitor the market changes.
As of 5 January, China’s national price of HRB400E 20mm rebar-an indicator of domestic steel-market sentiment- was assessed by Mysteel at RMB 3,315/t ($475/t) including 13% VAT, down RMB 10/t from one week before.
During 30 December-5 January, daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 trading houses tracked by Mysteel throughout China averaged 88,450 t/day, sliding by 8,203 t/d or 8.5% from the prior week.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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