Taiwan Feng Hsin's Scrap, Rebar Prices keep Stable

Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, Central Taiwan, has decided to roll over its buying price for locally sourced scrap and its list price for rebar for the week over December 2-6, a company official confirmed on December 3.

Consequently, Feng Hsin will continue to sell its 13mm dia rebar at TWD 15,700/tonne ($515/t) for a sixth straight week till this Friday, while during this week too, the mini-mill's buying price for locally-sourced HMS 1&2 80:20 scrap will continue to be at TWD 7,500/t after the company lifted its price by TWD 200/t last week, according to the company official.

Although prices of steel scrap in the global market continued strengthening over the past week, the gains were limited. This gave the mini-mill in Taiwan some confidence to maintain its procurement price for locally sourced scrap at the current level to wait and see for the time being, Mysteel Global understands.

In fact, rebar sales in Taiwan performed well last week, which helped to further improve sentiment in Taiwan's steel market, Mysteel Global notes. "We have decided to remove the discounts we offered during our recent sales negotiations, which means that our rebar sales price has actually seen some increase this week, even though the (rebar) list price still looks stable," Feng Hsin's official told Mysteel Global.

As of December 2, US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan's scrap and rebar markets, had increased for a fourth week to reach $250/t CFR Taiwan, making for a rise of $2/t week on week or up $12/t month on month. During the same period, Japan-origin H2 scrap was reported at $265/t CFR Taiwan as of Monday, gaining another $5/t week on week or jumping by $17/t from one month before, Mysteel Global learned from the local market.

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