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Taiwan Feng Hsin cuts rebar & scrap prices

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Melting Scrap
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17 Mar 2021, 10:18 IST
Taiwan Feng Hsin cuts rebar & scrap prices

Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, Central Taiwan, has decided to lower both its rebar list prices and buying prices for locally-sourced scrap for business over March 15-19, after raising the two prices continuously for four weeks. A company official Tuesday cited the weakness in global scrap markets.

With the latest adjustment, Feng Hsin is offering its 13mm dia rebar at TWD 19,400/tonne ($686/t) EXW, down TWD 300/t from last week's seven-week high, while its price for local HMS 1&2 80:20 scrap slipped by the same degree to reach TWD 10,600/t for procurement till this Friday, according to the official.

"We made the decision mainly because of the retreat in global scrap prices," Feng Hsin's official explained.

As of March 15, the price of US-sourced HMS 1&2 80:20 scrap was assessed at $420/t CFR Taiwan, reversing down $15/t on week after growing for the four prior weeks by a total of $75/t, and that of Japan-origin H2 scrap posted a larger on-week fall of $20/t to reach $430/t CFR Taiwan after taking a pause over the prior week, a local market source said.

The global scrap market retreat was in line with market expectations as prices had grown to a very high level after rising for several weeks. This aggravated the wait-and-see sentiment in Taiwan's steel market and persuaded local end-users to slow their pace of placing new orders, the company official explained.

Consequently, after noting the quiet market mini-mills in Taiwan are moving to lower their rebar sales prices to facilitate sales, Mysteel Global noted.

Scrap prices in other Asian markets declined too over the past week. For example, in China, Mysteel's steel scrap price index dipped to Yuan 3,254.4/tonne ($500/t) on delivery and including the 13% VAT as of March 12, lower by Yuan 7.9/t on week. This dip was mainly driven by fluctuations in prices of other raw materials and the stepped-up deliveries of scrap to steel mills.

Written by Nancy Zheng, zhengmm@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.

 

17 Mar 2021, 10:18 IST

 

 

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