Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to raise its rebar list prices and buying prices for locally-sourced scrap for transactions over January 16-19 to reflect rising scrap prices globally and better local sales of rebars, a company official confirmed on Monday.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 20,900/t ($689.7/t) EXW for business discussions till this Thursday, higher by TWD 400/t from the prior week, according to the official. The steelmaker has also raised its buying price for local HMS 1&2 80:20 scrap by TWD 500/t on week, paying collectors TWD 12,000/t for procurement this week. The business week is short in Taiwan this week as companies will cease work on Thursday to begin celebrating Chinese New Year from Friday January 20, Mysteel Global notes.
Feng Hsin decided to raise buying prices for local scrap in view of the climb in scrap prices globally. Besides, the mini-mill also chose to raise rebar list prices as the company has been incurring higher production costs, a company official explained.
For example, as of January 16, the price of US-sourced HMS 1&2 80:20 material shipping to Taiwan had increased for the eighth consecutive week, gaining another $7/t on week to reach $400/t CFR Taiwan. During the same period, the price of Japan-origin H2 scrap was reported at $435/t CFR Taiwan, higher by $20/t from one week earlier, according to a local market source.
Feng Hsin’s rebar sales performed strongly last week as some end-users pursued transactions and made some deals after noting the continuous rally in global scrap prices, the local market source added, a move which also encouraged local steel mills to hike their product prices.
As for China’s steel market, rebar prices continued tracking north on better domestic market sentiment last week, though demand from end-users has weakened further with the Chinese New Year holiday starting in three days’ time.
For example, the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 4,257/tonne ($629.2/t) including the 13% VAT as of January 16, gaining another Yuan 32/t on week and reaching the highest since August 19.
Written by Carly Chen, chenziyi@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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