Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to cut its rebar list prices by another TWD 200/tonne ($6/t) on week for business discussions over March 31-April 2, a company official has confirmed. However, the mill is maintaining its buying prices for local scrap during the period while it monitors market conditions.
This week is a short working week in Taiwan because of the public holiday for the Qingming Festival and Children’s Day over April 3-6, Mysteel Global noted. The Taichung-based company had lowered its rebar prices by TWD 200/t on week last week after these had stayed at TWD 18,500/t for three weeks, as reported.
With the latest product-price adjustment, the mini-mill is now offering its 13mm dia rebar at TWD 18,100/t EXW, while its procurement price for local HMS 1&2 80:20 scrap stays unchanged on week at TWD 9,300/t, according to the official.
Feng Hsin is in no hurry to adjust its local scrap procurement prices this week, as recently prices of global scrap delivered to Taiwan have been moving in different directions.
As of March 31, the price of US-sourced HMS 1&2 80:20 scrap was reported at $318/t CFR Taiwan, edging down $2/t on week, while the price of Japan-origin H2 scrap had increased to $335/t CFR Taiwan, higher by $10/t from two weeks earlier, according to a local market source. There was no quotation for Japan-origin H2 scrap over the previous week, as reported.
However, the company still decided to make concessions in its rebar list prices to facilitate sales, given the depressed demand from local end-users.
In parallel, rebar prices in the Chinese mainland have hovered low over the past week due to the slower recovery in demand, aggravating the negative sentiment in Taiwan’s steel market, Mysteel Global learned.
As of March 31, China’s national price of HRB400E 20mm dia rebar, a pointer to China’s steel-market sentiment, was assessed by Mysteel at Yuan 3,342/tonne ($460/t) including the 13% VAT, falling by Yuan 23/t from one week earlier.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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