Taiwan’s Feng Hsin cuts rebar, scrap prices

• Feng Hsin lowers rebar, scrap prices on weak demand
• China’s rebar gains as scrap prices keep sliding

Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to cut its rebar list prices and procurement prices of local scrap for transactions over July 14-18 in response to the decrease in global scrap prices and the weakness in rebar demand from end-users, according to a company official.

With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 16,200/t ($553/t) EXW for business discussions till this Friday, paring its long product price by TWD 200/t on week after taking a pause over the prior week. Its buying price for local HMS 1&2 80:20 scrap reaches TWD 7,800/t, also lower by TWD 200/t from the previous week, the official confirmed.

One major reason for Feng Hsin opting to cut the two prices was the persistent weakness in prices of global scrap delivered to Taiwan, a softness that could not lend much support to local rebar prices from the cost side, Mysteel Global learned.

As of July 14, the price of US-sourced HMS 80:20 scrap was reported at $293/t CFR Taiwan, down by $2/t from the prior week, while the price of Japan-origin H2 scrap had slipped for the fifth consecutive week to stand at $303/t CFR Taiwan after it too fell by $2/t on-week, according to a local market source.

In parallel, rebar demand from construction contractors remained dull in summer with its high temperatures and frequent heavy rains, another reason for the company’s price cut, Mysteel Global was told.

However, rebar prices in the Chinese mainland recovered in the second half of last week, mainly thanks to improved market sentiment and the expectation of a production cut in North China’s Shanxi province, as reported.

On 14 July 14, the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at RMB 3,291/ ($459/t) including the 13% VAT, rising by RMB 46/t ($6/t) from one week before.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.