Feng Hsin Steel, Taiwan’s largest rebar producer, has sharply lifted its rebar list prices and local scrap buying price for transactions over December 21-25 in response to the large growth in global scrap prices, a company official confirmed on Tuesday.
With the latest adjustment, the mini-mill headquartered in Kaohsiung, south Taiwan, is offering its 13mm dia rebar at TWD 18,600/tonne ($660/t) EXW for sales till this Friday, higher by a large TWD 1,200/t on week and taking the price to its highest level since November 2018.
At the same time, Feng Hsin raised its buying price for locally-sourced HMS 1&2 80:20 scrap to a 33-month high of TWD 10,300/t, up TWD 1,000/t from one week before, Mysteel Global learned.
“We have to raise our rebar sales price and (locally-sourced) scrap buying price because of the dramatic rise in the global scrap prices,” Feng Hsin’s official explained.
The price of US-sourced HMS 1&2 80:20 scrap in Taiwan had been growing steadily since mid-October and as of December 21 had soared by another $20/t on week to $405/t CFR Taiwan. Similarly, that for Japan-origin H2 scrap witnessed a larger on-week rise of $29/t to top $450/t CFR Taiwan, according to a local market source.
International scrap prices have kept robust over the past two months, as supply has been tight in contrast to the strong demand from steel producers, Mysteel Global noted.
“The recovery in downstream industries including the auto and manufacturing sectors has been faster than expected, leading to the shortage (in scrap supply) and boosting the prices of steelmaking raw materials including scrap and iron ore,” a market source in Shanghai commented.
Shagang Group, China’s largest electric-arc-furnace steelmaker in East China’s Jiangsu province, also decided to raise its steel scrap procurement price by Yuan 80/tonne ($12.2/t) effective from December 19 to encourage deliveries, 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 Research.
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