Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to lower its rebar list price for the second week by another TWD 300/tonne ($10.8/t) over August 16-20 to facilitate sales, a company official confirmed on Tuesday.
With the latest adjustment, Feng Hsin’s list price for 13mm dia rebar reaches TWD 22,600/t EXW. The mini-mills buying price for local HMS 1&2 80:20 scrap also declined by TWD 200/t on a week to TWD 11,400/t after keeping stable for two weeks, according to the official.
The mini-mill had decided to lower its rebar list price further this week as “sales remained weak last week and most buyers still stayed on the sidelines waiting for a sharper fall,” he explained.
In addition to the decrease in this week’s rebar list price, Feng Hsin also decided to concede some of its margins in actual transactions to attract buyers, indicating the weakness of Taiwan’s local steel market.
As of August 16, the price of US-sourced HMS 1&2 80:20 scrap remained unchanged on week at $438/t CFR Taiwan, taking a pause after sliding for four consecutive weeks by a total of $32/t.
No offers of Japan-origin H2 scrap were confirmed last week as many Japanese companies have halted business over August 11-17 to celebrate the Bon Festival, Mysteel Global learned.
However, Japanese H2 grade scrap prices declined by Yen 500/tonne ($4.6/t) on week last week, partly due to the weakening buying enthusiasm from domestic mini-mills, most of which have sufficient stocks on hand for consumption during the holiday, as reported.
Feng Hsin also lowered its buying prices for local scrap this week to reflect the large decline in the global scrap market over the past one month, according to the official. The mini-mill had received enough scrap last week when its buying price was stable.
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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