- Imported scrap prices continue declining in Taiwan
- Wet season disrupts construction activity, demand
Mysteel Global: Taiwan’s largest rebar producer, Feng Hsin Steel, headquartered in Taichung in central Taiwan, has decided to trim its rebar list price and local scrap purchasing price for transactions over 22 June -26 June, in response to lower global scrap prices and weak end-user demand, according to a company official.
For business discussions through this Friday, Feng Hsin is offering its 13mm-diameter rebar at TWD 18,100/t ($570/t) EXW, down TWD 300/t ($10/t) on week after holding prices steady in the previous week. Meanwhile, the mini-mill’s buying price for local HMS 80:20 scrap now stands at TWD 9,600/t ($302/t), also down TWD 300/t ($10/t) on week, the official confirmed.
Prices of imported scrap delivered to Taiwan have continued to decline recently, weighing on local scrap prices and reducing cost support for rebar, Mysteel Global noted.
As of 22 June, US-origin HMS 80:20 scrap was assessed at $350/t CFR Taiwan, slipping for the fourth consecutive week by $5/t. N0 quotation for Japanese H2 scrap was available over the previous week, according to a local market source in Taiwan.
In addition, Taiwan’s rebar demand remained sluggish, as outdoor construction activities were disrupted by frequent rainfall during the wet season, adding further pressure on rebar prices.
On the Chinese mainland, rebar prices also lost ground amid weak end-user demand under high temperatures in northern China and frequent rainfall in eastern and southern regions, which further weighed on sentiment in Taiwan’s steel market.
As of 22 June, China’s national price of HRB400E 20mm rebar was assessed by Mysteel at RMB 3,345/t ($492/t) including 13% VAT, down RMB 48/t ($7/t) on week.
During 16 June – 22 June, daily trading volume of construction steel including rebar, wire rod, and bar-in-coil among the 237 Chinese trading houses under Mysteel’s survey averaged 85,452 t/d, down 10,977 t/d or 11.4% from the previous week.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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