Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to lift its buying price for locally-sourced scrap by TWD 200/MT (USD 6.6/MT) for the November 25-29 week after keeping its procurement price unchanged over the prior three weeks, a company official confirmed on November 25. By contrast, Feng Hsin is keeping its rebar sales price stable for a fourth straight week, however.
Thus, Feng Hsin’s procurement price for local HMS 1&2 80:20 scrap rises by TWD 200/MT week-on-week to reach TWD 7,500/MT, while the mini-mill will continue to sell its 13 mm dia rebar at TWD 15,700/MT till this Friday, according to the official.
“The latest adjustment was mainly due to the fact that scrap prices in the global market have been creeping up for several weeks, but the performance in domestic rebar sales was not so prominent,” Feng Hsin’s official told Mysteel Global.
As of November 25, US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan’s scrap and rebar markets, was reported at USD 248/MT CFR Taiwan, seeing a slight rise of USD 2/t week on week or jumping by USD 10/MT compared from one month ago. Meanwhile, Japan-origin H2 scrap was priced at USD 260/t CFR Taiwan as of Monday, gaining some USD 1/MT week on week or USD 12/MT month on month, Mysteel Global learned from the local market.
Although rebar sales in Taiwan have not been so strong so far this month, market sentiment has seen some improvement over the past week, mainly boosted by the persistently firm prices in China’s construction steel market, Mysteel Global was told.
For instance, China’s average price for HRB400 20mm dia rebar, a bellwether of steel market sentiment, continued to strengthen over the past week to reach a four-month high of Yuan 4,167/tonne (USD 593/MT) including the 13% VAT as of November 22, marking a large increase of Yuan 192/MT on week or soaring Yuan 343/MT on month, according to Mysteel’s data.
“We plan to place some limits on our rebar sales at the current low prices and may raise the sales price accordingly if we get enough orders,” Feng Hsin’s official disclosed.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
Leave a Reply