Taiwan Feng Hsin lifts scrap buying price by $9/t
ABSTRACT Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided to hike its buying price for locally-sourced ...
ABSTRACT
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to hike its buying price for locally-sourced scrap by TWD 300/tonne ($9.4/t) for transactions over October 11-14 to encourage deliveries. However, mediocre demand for construction steel has led the mini-mill to roll over its rebar list prices, Mysteel Global learned.
The company's weekly pricing meeting had been delayed to Tuesday this week due to the public holiday in Taiwan on October 10.
With the latest adjustment, the mini-mill's buying price for local HMS 1&2 80:20 scrap has been raised to TWD 10,900/t for business discussions till this Friday, the highest since mid-July, while its 13mm dia rebar price stays unchanged at TWD 20,000/t EXW for the third week, according to the official.
Scrap supply in Taiwan remains tight due to the depression in manufacturing industries which is limiting the volumes of scrap being generated. This is encouraging local mini-mills to lift their buying prices for local scrap to boost deliveries, the official told Mysteel Global.
Scrap prices in the global market diverged this week, with the price of US-sourced HMS 1&2 80:20 scrap growing by $10/t on week to $365/t CFR Taiwan as of October 11, while the price of Japan-origin H2 scrap came in at $375/t CFR Taiwan, losing $15/t from one week before, according to a local market source.
Feng Hsin had resumed production on October 4 after having suspended operations for eight days due to the failure of a distribution substation. However, the lackluster demand meant that the impact of the stoppage on the local steel market was limited. The poor demand also forced the company to concede a margin on its rebar sales prices in actual transactions last week to facilitate sales, Mysteel Global was told.
"Although this week we've cancelled the discount we were offering on rebar sales, we are not sure whether the price can be accepted by end-users," the official admitted.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
