Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to continue rolling over its rebar list price and buying price for locally sourced scrap for the November 11-15 week, a company official confirmed on November 11.
Thus, Feng Hsin’s list price for its 13mm dia rebar will remain at TWD 15,700/tonne ($516/t) till this Friday, and the mini-mill’s buying price for locally-sourced HMS 1&2 80:20 scrap will keep stable at TWD 7,300/t for this week, according to the official.
There was no significant improvement in rebar sales last week as many building contractors had stocked enough products when rebar prices had been hovering at a low level, Mysteel Global notes. This had encouraged Feng Hsin to keep its rebar list prices stable to wait and see, for the time being.
Monday’s decision means that Feng Hsin is keeping the two prices stable for a second week, even though scrap prices in the global market continued to move up last week after taking a breather over the prior week, Mysteel Global notes.
As of November 11, US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan’s scrap and rebar markets, was reported at $242/t CFR Taiwan, gaining some $4/t from one week before. In parallel, Japan-origin H2 scrap was priced at $252/t CFR Taiwan as of Monday, seeing a week-on-week rise of $4/t, Mysteel Global learned.
“Local scrap suppliers are in no hurry to sell more products to mini-mills, as they are expecting a further increase in scrap prices in the coming term,” Feng Hsin’s official told Mysteel Global, adding that global scrap prices are likely to remain strong going forward because supply generally declines in winter.
This article has been published under article exchange agreement between Mysteel Global and SteelMint Research
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