Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to raise its buying price for locally-sourced scrap and its rebar list prices by TWD 300-400/tonne ($10.3-13.7/t) over September 14-18 to respond to the continuous rally in global scrap prices and better sales of rebars, a company official confirmed on Tuesday.
After the latest adjustment, for business till this Friday, the mini-mill headquartered in Kaohsiung in south Taiwan, is offering its 13mm dia rebar at TWD 15,700/t EXW, higher by TWD 400/t from one week before, while its procurement price for locally-sourced HMS 1&2 80:20 scrap grows by TWD 300/t on week to TWD 7,900/t, according to the official.
Feng Hsin finally decided to keep pace with the firming scrap prices in the global market after holding its two prices stable for two weeks, Mysteel Global notes. The robust scrap prices boosted sentiment in Taiwan’s steel market and encouraged many steel end-users to return to the market to build up some stocks of finished steel.
“We took some measures on rebar sales last week, after noting local buyers’ high enthusiasm for stocking and the further increase in global scrap prices,” the company official told Mysteel Global.
As of September 14, the price of US-sourced HMS 1&2 80:20 scrap in Taiwan had increased for the tenth week by another $5/t on week to a 15-month high of $285/t CFR Taiwan. The price of Japanese H2 scrap witnessed a large on-week rise of $12/t to top $302/t CFR Taiwan, also the highest since mid-June 2019, Mysteel Global learned.
However, scrap prices in China saw some retreat under the pressure of falling steel prices there, which prompted some domestic steel mills to lower their scrap buying prices to better manage their production costs, Mysteel Global notes.
China’s largest electric-arc-furnace mill, Shagang Group, trimmed its steel scarp procurement price by Yuan 30/tonne ($4.3/t) effective September 12, the first price cut since August 25, as Mysteel Global reported.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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