Taiwan’s Feng Hsin cuts rebar, scrap prices further

• Feng Hsin cuts prices due to drop in global scrap prices 
• Weak global scrap market pressures Taiwan steel sector

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 the buying price of local scrap further for transactions over 8-12 June  in response to the continuous fall in global scrap prices. according to a company official.

With the latest adjustment, Feng Hsin is offering its 13mm-diameter rebar at TWD 18,400/t ($582/t) Exw for business discussions through this Friday, down by TWD 300/t ($9/t) on week and marking a third consecutive weekly decline. Meanwhile, its buying price for local HMS 80:20 scrap now sits at TWD 9,900/t ($313/t), down TWD 200/t ($6/t) from one week earlier, the official confirmed.

Prices of global scrap delivered to Taiwan continued to head south, reducing the cost support for Taiwan’s steel market and prompting local mini-mills to cut their procurement prices for local scrap accordingly. Mysteel Global noted.

As of 8 June, the US-origin HMS 80:20 scrap came in at $357/t CFR Taiwan, down for the second week by $3/t on week, and the price of Japan-origin H2 scrap was reported at $388/t CFR Taiwan, falling by $2/t from two weeks ago, according to a local market source in Taiwan. No quotation for Japanese H2 scrap had been available over the previous week, as reported.

Besides, rebar prices in the Chinese mainland remained weak over the past week amid softening market sentiment, as end-user demand shrank further with the onset of the traditional summer lull for steel consumption. This trend also aggravated the negative sentiment in Taiwan’s steel market and put some pressure on local rebar prices, Mysteel Global learned.

On 8 June, China’s national price for HRB400E 20mm rebar was assessed by Mysteel at RMB 3,399/t ($501/t) including 13% VAT, sliding by RMB 32/t ($5/t) from one week before.

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