Taiwan Feng Hsin's rebar, scrap prices rise further

Mysteel Global: Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to raise its rebar list prices and buying prices of local scrap by another TWD 200/tonne ($6.2/t) on week for business negotiations over October 21-25, according to a company official.

With the latest adjustment, the mini-mill's offering price for 13mm dia rebar reaches TWD 18,800/t EXW for business discussions till this Friday, up for the third consecutive week and taking the total increase since the end of September to TWD 700/t. The company's procurement price for local HMS 1&2 80:20 scrap stands at TWD 9,600/t, the official confirmed.

Prices of global scrap delivered to Taiwan have increased recently, lifting the production costs of local mini-mills and encouraging them to raise their buying prices of local scrap and rebar list prices accordingly, Mysteel Global learned.

As of October 21, the price of US-sourced HMS 1&2 80:20 scrap was reported at $330/t CFR Taiwan, up for the second week by another $10/t on week, while the price of Japan-origin H2 scrap remained unchanged on week at $330/t CFR Taiwan, a local market source said.

The October-December quarter is usually a peak season for steel consumption in Taiwan, as many local contractors accelerate their construction pace while the pleasant autumn weather lasts. This may lend some support to the local steel market to some extent, Mysteel Global noted.

As for the steel market in the Chinese mainland, finished steel prices lost further ground last week, as market sentiment weakened with the central government's lower-than-expected stimulus measures announced for the property sector last Thursday.

On Monday, the national price of HRB400E 20mm dia rebar, a pointer to China's steel-market sentiment under Mysteel's assessment, had declined to Yuan 3,706/tonne ($520/t) including the 13% VAT, lower by Yuan 195/t from one week earlier.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.