With the latest adjustment, Feng Hsin’s price for 13mm dia rebar has been cut to a three-month low of TWD 19,400/t EXW for sales till this Friday, according to the official. The mini-mill is paying TWD 10,300/t for local HMS 1&2 80:20 scrap, down for the second week by another TWD 300/t on week.
One major reason for Feng Hsin’s decision was the further decrease in global scrap prices, which aggravated the pessimism in Taiwan’s steel market, Mysteel Global was told.
As of November 7, the price of US-sourced HMS 1&2 80:20 material was at $345/t CFR Taiwan, down for the third week by another $10/t on week, while the price of Japan-origin H2 scrap had also declined by $10/t from the prior week to $355/t CFR Taiwan, according to a local market source.
Considering the prevailing negative sentiment and lackluster demand among Taiwan’s local end-users, many steel producers on the island had to trim their rebar list prices further this week to facilitate sales.
Although Chinese finished steel prices have recovered slightly, this has failed to reverse the downtrend in Taiwan’s steel market, Mysteel Global noted.
As of November 7, the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 3,917/tonne ($541/t) including the 13% VAT, gaining Yuan 34/t on week.
Chinese scrap prices increased accordingly this week in response to the decrease in scrap deliveries to steelmakers. Shagang Group (Shagang), China’s leading electric-arc-furnace (EAF) steelmaker headquartered in Zhangjiagang in East China’s Jiangsu province, has decided to raise its steel scrap buying prices by Yuan 80-100/t for all grades effective from November 8, 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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