Taiwan’s Feng Hsin raises rebar, scrap prices

• Global scrap prices firm
• Rebar prices rise w-o-w 

Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to raise its rebar list prices and procurement prices of local scrap for transactions over 4-8 August in response to higher production costs, according to a company official.
With the latest adjustment, the Taiwanese mini-mill is offering its 13mm dia rebar at TWD 17,000/tonne (t) ($568/t) Exw for business discussions till this Friday, hiking the price further by TWD 500/t ($17/t) on week after the previous week’s increase of TWD 300/t ($10/t), and its buying price of local HMS 80:20 scrap now reaches TWD 8,100/t ($270/t), higher by TWD 300/t ($10/t) from the prior week, the official confirmed.

Prices of global scrap delivered to Taiwan kept firm, with the price of US-sourced HMS 80:20 scrap standing at $300/t CFR Taiwan as of 4 August, up by $2/t on week, while that of Japan-origin H2 scrap was flat at $308/t CFR Taiwan, taking a pause after the continuous rise over the prior two weeks, according to a local market source.

Feng Hisn’s price hike this week was mainly to reflect its higher production costs, as both square billet and steel scrap prices increased, the company official explained, adding that the mini-mill imposed restrictions on rebar sales last week because the selling prices did not align with its costs.

Rebar prices in the Chinese mainland retreated recently amid cooling market sentiment. Meanwhile, spot sales of construction steel items slowed during the traditional off-season in summer when high temperatures and frequent rains disrupt building activity in most regions of the country, putting some pressure on steel prices, Mysteel Global noted.

As of August 4, the national price of HRB400E 20mm dia rebar, a bellwether of China’s domestic steel-market sentiment, was assessed by Mysteel at RMB 3,375/t ($470/t) including the 13% VAT, lower by RMB 46/t ($6/t) on week and sliding by a total of RMB 88/t ($12/t) from its recent high on 30 July.

Note:This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.