Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to roll over its rebar list prices and procurement prices for locally-sourced scrap for transactions over July 11-15, a company official confirmed on Tuesday.
For the business discussion till this Friday, the mini-mill continues to offer its 13mm dia rebar at TWD 21,300/tonne ($711/t) EXW, the same level as last week, and its buying price for local HMS 1&2 80:20 scrap also stays unchanged on week at TWD 11,200/t, according to the official.
The mini-mill’s rebar list price and scrap buying price took a pause after the continuous falls over the prior three weeks that slashed TWD 1,800-2,000/t in total off the prices. Feng Hsin called a halt, mainly in response to signs that global scrap prices were stabilizing and that buying interest among local end-users had improved, Mysteel Global learned.
As of July 11, the price of US-sourced HMS 1&2 80:20 scrap remained stable for the second week at $370/t CFR Taiwan, while the price of Japan-origin H2 scrap decreased at a slower pace to $380/t CFR Taiwan, down $10/t on week, as against the prior on-week fall of $40/t, according to a local market source.
Although sentiment in Taiwan’s steel market improved slightly last week, the many uncertainties in the global market still placed pressure on the local steel market, Mysteel Global learned.
“The Consumer Price Index in the U.S. will be released this Wednesday and if it hits a new high, it may rekindle the negative sentiment in the local market,” the company official explained, adding that the Chinese steel market seems persistently depressed.
Chinese steel prices have softened due to the poor demand from end-users during the summer off-season, with the national price of HRB400E 20mm dia rebar under Mysteel’s assessment, for example, sliding to Yuan 4,180/tonne ($621/t) including the 13% VAT as of July 11, lower by Yuan 97/t from one week before.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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