Taiwan Feng Hsin's rebar, scrap prices rise further
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With the latest adjustment, the mini-mill headquartered in Kaohsiung, south Taiwan, is offering its 13mm dia rebar at a 15-month high of TWD 16,400/t EXW for the business till this Friday, according to the official. Its procurement price for locally-sourced HMS 1&2 80:20 scrap has increased to TWD 8,400/t.
One major reason for Feng Hsin lifting its price was the persistent robustness of scrap prices in the global market. As of November 30, the price of US-sourced HMS 1&2 80:20 scrap hasd moved up again for the seventh consecutive week to reach a two-year high of $317/t CFR Taiwan, up another $7/t from one week before. That for Japan-origin H2 scrap was reported at $337/t CFR Taiwan, the highest since April 2019 after another on-week rise of $12/t, according to a local market source in Taiwan.
Feng Hsin's rebar sales were mediocre last week as construction steel users only purchased some products to fulfil their immediate needs. "We believe that demand from end-users will not be bad as now is the traditional peak season for long steel consumption in Taiwan. But buyers are very cautious about building up stocks for the time being when the prices have increased to such a high level," Feng Hsin's official explained.
However, scrap prices in the global market have not shown any signs of retreating as demand from steel mills has kept firm so far and may lend some support to Taiwan's finished steel market, Mysteel Global noted.
Shagang Group, China's largest electric-arc-furnace steelmaker in East China's Jiangsu province, had raised its steel scrap procurement price by Yuan 50/tonne ($7.6/t) effective November 26, indicating its desire to encourage deliveries, considering the limited supply in winter, as Mysteel Global reported.
Written by Nancy Zheng, zhengmm@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
