Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to lift its rebar list prices and procurement prices for local scrap for the third consecutive week over August 29-September 2 to reflect the continuous rise in global scrap prices, a company official confirmed on Tuesday.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 20,600/tonne ($677/t) EXW for local sales till this Friday, up for the third consecutive week by another TWD 400/t from the prior week, while its buying price for local HMS 1&2 80:20 scrap gains TWD 300/t on week to reach TWD 10,500/t, according to the official.
This week’s rises were partly attributed to the strength of global scrap markets, Mysteel Global was told.
As of August 29, the price of US-sourced HMS 1&2 80:20 scrap was reported at $375/t CFR Taiwan, growing for the third straight week by another $15/t from one week earlier, while that of Japan-origin H2 scrap had jumped by a larger $25/t on week to $395/t CFR Taiwan, according to a local market source. This compares with the more sedate on-week rise of $15/t for H2 in the prior week and was ascribed to tight supplies.
The continuous recovery in global scrap prices boosted sentiment in Taiwan’s steel market and lent some support to the rebar sales prices, as end-users became active in the physical market after noting the rally in scrap prices overseas, Mysteel Global noted.
For their part, Chinese rebar prices have been rangebound as demand from local construction companies and traders remain weak. As of August 29, the national price of HRB400E 20mm dia rebar came in at Yuan 4,209/tonne ($609/t) including the 13% VAT, down Yuan 19/t on week, according to Mysteel’s data.
The lackluster sales forced local steel producers to cut their scrap buying prices to reduce their production costs. For example, on Tuesday Shagang Group, a leading electric-arc-furnace steelmaker in East China’s Jiangsu, cut its steel scrap procurement prices for the third time this month by another Yuan 50/t effective August 30, as 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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