Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to raise its rebar list prices and scrap buying prices for transactions over November 28 – December 2 on support of the recovery in global scrap prices and better steel demand in the local market, a company official confirmed on Monday.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 19,400/tonne ($626/t) EXW for the business discussions till this Friday, higher by TWD 200/t from the prior week. In parallel, its buying price for local HMS 1&2 80:20 scrap also rises by TWD 200/t on week to reach TWD 10,200/t, according to the official.
One major reason for Feng Hsin’s decision was the growth in prices of global scrap delivered to Taiwan, Mysteel Global learned.
As of November 28, the price of US-sourced HMS 1&2 80:20 material was at $330/t CFR Taiwan, up $5/t on week, according to a local market source. Meanwhile, the price of Japan-origin H2 scrap was reported at $350/t CFR Taiwan, seeing a sharper rise of $10/t from one week before.
Besides, thanks to the replenishments of end-users, finished steel sales in Taiwan have performed well over the past two weeks lifting the sentiment in the local steel market and encouraging local steel producers to raise their list prices accordingly, Mysteel Global was told.
The October-December quarter is the traditional peak season for steel consumption in Taiwan, as many local contractors usually accelerate their pace of construction, hoping to complete the projects before the Chinese New Year holiday which next year will fall in late January 2023, Mysteel Global noted.
As for Chinese steel market, the price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 3,941/tonne ($547/t) including the 13% VAT as of November 25, down Yuan 27/t on week, as demand shrank with the fall in temperatures in northern China.
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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