Taiwan Feng Hsin's rebar, scrap prices drop further
Feng Hsin Steel, Taiwan’s largest rebar producer headquartered in Taichung in central Taiwan, has decided on a further reduction to its rebar list prices and bu...
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided on a further reduction to its rebar list prices and buying prices for local scrap for business discussions over October 23-27, a company official confirmed on Tuesday, saying the decision reflects lower scrap prices in the global market.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 19,100/tonne ($592/t) for transactions till this Friday, lower by TWD 400/t from two weeks earlier, according to the official. Its buying price for local HMS 1&2 80:20 scrap reaches TWD 10,700/t this week, down by another TWD 200/t from Monday after the price cut of TWD 200/t on October 19, he also confirmed.
The persistent weakness in prices of global scrap delivered to Taiwan was one major reason for Feng Hsin's price cut this week, Mysteel Global learned.
As of October 23, the price of US-sourced HMS 1&2 80:20 scrap was reported at $360/t CFR Taiwan, down $8/t from two weeks before, while the price of Japan-origin H2 scrap was at $362/t CFR Taiwan, lower by $6/t during the same period, according to a local market source.
Besides, demand for rebar from local construction contractors is not so strong, and finished steel prices in mainland China have also lost the impetus to continue rising, factors which aggravated the negative sentiment in Taiwan's steel market and placed more pressure on local steel prices, Mysteel Global noted.
For example, the national price of HRB400E 20mm dia rebar, a bellwether of China's domestic steel-market sentiment, was assessed by Mysteel at Yuan 3,801/tonne ($520/t) including the 13% VAT as of October 23, down Yuan 1/t from one week before but falling by Yuan 23/t from the recent high on October 17.
Written by Nancy Zheng, zhengmm@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
