Taiwan’s Feng Hsin Steel hikes rebar, scrap prices by $7/t

• Feng Hsin hiked rebar and scrap prices after two months
• Move backed by better sentiment and global scrap recovery

Mysteel Global: Feng Hsin Steel, Taiwan’s largest rebar producer, has decided to raise both its rebar list prices and procurement prices of local scrap by TWD 200/tonne (t) ($7/t) on week for transactions over 19-23 May, according to a company official.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 17,400/t ($577/t) EXW for business discussions till this Friday, and its procurement price for local HMS 80:20 scrap reaches TWD 8,400/t ($278/t), the official confirmed.

It is Feng Hsin’s first price hike over the past two months, mainly due to the recovery of global scrap prices delivered to Taiwan and improved market sentiment in the local steel market.

As of May 19, the price of US-sourced HMS 80:20 scrap was reported higher by $7/t on week at $295/t CFR Taiwan, ending the persistent weakness during the past two months, and the price of Japan-origin H2 scrap also gained by $5/t on week to $313/t CFR Taiwan, a market source based in Taiwan said.

Feng Hsin’s latest hike in its rebar list prices also reflects rising production costs with higher steel scrap prices. Meanwhile, sentiment in Taiwan’s steel market has improved to some extent with the easing of trade tensions between the United States and China lately.

On 12 May, the world’s two largest economies announced to temporarily roll back high tariffs on each other’s goods, and the measures officially took effect on 14 May, as reported.

The positive signals also boosted rebar prices in the Chinese mainland last week. By 16 May, the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment under Mysteel’s assessment, reached RMB 3,335/t ($463/t) including the 13% VAT, higher by RMB 33/t ($5/t) from one week earlier, though it retreated by RMB 18/t ($2/t) from the prior day’s high of RMB 3353/t ($463/t).

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