SteelMint learned in recent reports from sources that Taiwan’s domestic scrap and rebar prices have observed sharp weakening following the global downturn last week and poor demand in the construction sector locally keeping overall finish steel demand subdued.
The leading mini-mill Feng Hsin Iron & Steel has lowered its domestic steel scrap buying price successively twice effective from 22nd and 25th Jun’19 observing a total drop by TWD 400/MT (USD 13) as against the last week. As per updates, the company is paying TWD 8,700/MT (USD 280) for HMS 1&2 (80:20) scrap delivered to its Taichung mill effective from 25th June’19.
Prior to this, the company has observed two successive price cuts by each TWD 200/MT (USD 6.4) effective from 15th & 17th June.
Notably, domestic scrap prices in Taiwan have been moved down by total TWD 800/MT (USD 26) since 10th Jun’19. With the recent cut, the company observed the fourth successive price lowering in the last two weeks period.
SteelMint’s assessment for containerized imported HMS 1&2 (80:20) of US origin stands at around USD 270/MT, CFR Taiwan, lowering sharply by USD 10-12/MT against the last week on weakened global ferrous scrap prices and low domestic steel prices in US. However, now indications have inclined in favour of stability in the global prices in the near terms.
Feng Hsin Steel lowers finish long price sharply – The steelmaker also has adjusted finished steel prices effective from Monday. Its listed rebar selling price for 16-32 mm dia size stands at TWD 15,900/MT (USD 512) ex-works over 24th-28th June week, delivered from Taichung mill in Taiwan. Prices have fallen USD 26 from a peak achieved in the early Jun’19.
However, the price margin between scrap and rebar remains unchanged at around TWD 7,200/MT (USD 229) since more than a months’ time.
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