Taiwan: Feng Hsin raises rebar prices by TWD 200/t ($6/t), keeps scrap unchanged

• Stronger spot sales last week, firmer Chinese prices prompt rebar price hike
• Falling scrap prices may limit upside, US HMS 80:20 drops for 8th straight week

Taiwan’s largest rebar producer, Feng Hsin Steel, headquartered in Taichung in central Taiwan, has decided to hike its rebar list price by TWD 200/tonne ($t) ($6/t) for transactions over 20-24 July, while keeping its buying price of local scrap unchanged over the same period, according to a company official.

With the latest adjustment, Feng Hsin is offering its 13mm-diameter rebar at TWD 17,800/t ($549/t) EXW for business discussions through this Friday, while the mini-mill’s buying price for local HMS 80:20 scrap stays unchanged w-o-w at TWD 9,200/t ($284/t), the official confirmed.

This marks Feng Hsin’s first hike in its rebar list price since late May, following improved spot sales performance over the past week. Meanwhile, the mini-mill is seeking to restore profitability after several rounds of rebar list price cuts over the past two months, Mysteel Global learnt.

In parallel, prices of rebar and square billet in the Chinese mainland have recovered recently amid easing market pressure from the supply side, which also boosted positive sentiment in Taiwan’s steel market to some extent.

Mysteel’s assessment showed that as of 20 July, China’s national price of HRB400E 20mm rebar stood at RMB 3,286/tonne ($485/t) including 13% VAT, higher by RMB 11/t ($2/t) from one week before, while the price of Tangshan Q235 150mm square billet in North China’s Hebei province gained by RMB 30/t ($4/t) on week to RMB 2,980/t ($440/t) EXW and including the 13% VAT.

However, prices of global scrap delivered to Taiwan are still struggling amid a downtrend, which may limit the room for further rises in local rebar prices, Mysteel Global noted.

The US-origin HMS 80:20 scrap price fell by another $5/t on week to $330/t CFR Taiwan on 20 July, extending its losing streak to eight consecutive weeks with a cumulative drop of $34/t. No quotation for Japanese H2 scrap was available over the past week, according to a market source in Taiwan.

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