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Taiwan Feng Hsin Lifts Scrap, Rebar Prices Again

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Melting Scrap

BigMint Bureau

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19 Dec 2019, 10:15 IST

Taiwan Feng Hsin Lifts Scrap, Rebar Prices Again

Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, Central Taiwan, has decided to raise its rebar list price and its buying price for locally sourced scrap each by a further TWD 200/tonne ($6.7/t) for the week of December 16-20 to reflect the continual growth in steel scrap prices in the global market, a company official confirmed on December 17.

After the latest adjustment, Feng Hsin is selling its 13mm dia rebar at TWD 16,100/t for this week, a three-month high. The mini-mill's buying price for locally sourced HMS 1&2 80:20 scrap has been raised to TWD 7,900/t, the highest after the record of TWD 8,000/t over the September 2-6 week, according to the company official.

Thus, Feng Hsin's rebar list price and buying price for locally sourced scrap have increased for a second straight week, with a total rise for each reaching TWD 400/t, Mysteel Global notes. "It was mainly thanks to the continuous rally in global scrap prices, which lent some support to
Taiwan's scrap and steel markets," Feng Hsin's official explained.

Scrap prices in the global market have strengthened for a sixth consecutive week, just as market participants in Taiwan had anticipated, Mysteel Global learned.

As of December 16, the price of US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan's scrap and rebar markets, had increased to $265/t CFR Taiwan, up another $7/t week on week and making for a significant rise of $40/t compared with the recent low of $225/t two months ago. As of Monday, Japan-origin H2 scrap was reported at $275/t CFR Taiwan, seeing a week-on-week rise of $5/t.

However, sentiment in Taiwan's steel market is not particularly optimistic for the time being. "We are not sure whether our downstream customers will pick up the bill after we raised our rebar sales price again this week, despite that sale (of long steel) remained good last week," Feng Hsin's official indicated.

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