- Feng Hsin holds rebar, scrap prices steady despite weak demand
- US, Japan scrap prices drop; Taiwan buyers stay cautious
Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to roll over its rebar list prices and buying prices of local scrap for transactions over 16-20 June to monitor market changes, despite the continued weakness in global scrap prices, according to a company official.
For business discussions till this Friday, the mini-mill continues to offer its 13mm dia rebar at TWD 16,700/tonne (t) ($566/t) EXW, and its procurement price for local HMS 80:20 scrap also stays unchanged on week at TWD 8,200/t (278/t), the official confirmed.
Prices of global scrap delivered to Taiwan still struggled in the downtrend recently, Mysteel Global was told. As of June 16, the price of US-sourced HMS 80:20 scrap was reported at $295/t CFR Taiwan, slipping for the second week by $5/t from the previous week, and the price of Japan-origin H2 scrap declined by $3/t on week to reach $315/t CFR Taiwan, a market source in Taiwan said.
However, Feng Hsin is in no rush to lower the two prices further following the cuts made over the past two weeks, even though demand for rebar from local end-users remains weak due to frequent rainfall during the wet season, Mysteel Global learned.
Rebar prices in the Chinese mainland kept rangebound at low levels over the past week, as downstream demand for construction steel items remained thin during the traditional off-season in summer with the high temperatures in northern China and frequent rainfalls in eastern and southern China, as reported.
For example, the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at RMB 3,230/t ($450/t) including the 13% VAT as of 16 June, edging up by RMB 2/t (~$0/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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