ABSTRACT
Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to roll over its rebar list prices and scrap buying prices for transactions over November 21-25 after having cut the prices for three weeks, mainly due to the company’s better sales performance last week and stable scrap prices in the global market, a company official confirmed on Tuesday.
For business negotiations till this Friday, the mini-mill will continue to offer its 13mm dia rebar at TWD 19,200/tonne ($616/t) EXW, the same level from one week before, and its buying price for local HMS 1&2 80:20 scrap also stays unchanged on week at TWD 10,000/t, according to the official.
One major reason for Feng Hsin’s latest price decision had to with better demand from end-users, Mysteel Global was told.
“Many mini-mills in Taiwan offered some discounts on rebar sales in their actual business discussion last week, leading to a significant increment in new orders they have received,” a market source in Taiwan said.
Besides, scrap prices in the global market saw some signs of stabilizing, which also gave steel mills in Taiwan some confidence to hold their rebar list prices and scrap buying prices this week, to monitor the market development in the coming term, Mysteel Global noted.
As of November 21, the price of US-sourced HMS 1&2 80:20 material was reported at $325/t CFR Taiwan, staying unchanged on week and ending the continuous decline over the prior four weeks, according to a local market source. The price of Japan-origin H2 scrap was at $340/t CFR Taiwan on the same day after falling by $40/t over the past one month.
As for China’s scrap market, the price index under Mysteel’s assessment strengthened further last week, reaching Yuan 2,985.6/tonne ($417/t) on delivery and including the 13% VAT as of November 21, up by another Yuan 54.1/t from one week before, mainly supported by low scrap volumes at mills, 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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