Taiwan Feng Hsin keeps rebar, scrap prices stable
Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung, Central Taiwan, has decided to roll over both its rebar list price and procurement p...
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, Central Taiwan, has decided to roll over both its rebar list price and procurement price of locally-sourced scrap for the second week over November 1-5, despite the signs of softening in the global scrap price recently, a company official confirmed on November 2.
For this week, the mini-mill's list price of 13mm dia rebar, thus, stays at TWD 23,400/tonne ($841/t) EXW, and it will still pay TWD 12,600/t for local HMS 1&2 80:20 scrap, according to the official, even though global steel scrap prices have shown signs of softening recently, market sources noted.
The price of US-sourced HMS 1&2 80:20 scrap, for example, was at $483/t CFR Taiwan on November 1 or down $2/t on week after gains for the prior three weeks by a total of $20/t, and that of Japan-origin H2 scrap fell more sharply on week by $10/t to $535/t CFR Taiwan, according to a local market source.
Feng Hsin's decision to hold off from any price adjustments is partly due to the fact that it did not raise either of the prices in the last week of October when the global steel scrap price rallied, and the Taiwanese mill also need more time to observe the local rebar market, Mysteel Global understood.
The October-December quarter is usually a peak season for steel consumption in Taiwan with pleasant weather for outdoor construction, but so far Taiwan's long steel market has stayed quietly with pessimism among local buyers, Feng Hsin official acknowledged.
"No one has been keen to order new volumes now that global scrap prices have been softening and China's domestic steel prices have been easing," he said, adding that "they (end-uses in Taiwan) seem to be waiting for big discounts in rebar prices from suppliers".
Both global scrap price and China's rebar price have been of great reference to Feng Hsin for its weekly pricing policy and as of November 1, China's national price of HRB400E 20mm dia rebar under Mysteel's assessment slipped to its two-month low of Yuan 5,304/tonne ($829/t) including the 13% VAT, down Yuan 231/t on week or having lost Yuan 1,005/t from the recent high on October 9.
Written by Nancy Zheng, email@example.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.