Taiwan's Feng Hsin cuts rebar, scrap prices

MySteel Global: Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to cut its rebar list prices and local scrap buying prices both by TWD 200/tonne ($6.2/t) on week for transactions over December 16-20, a company official told Mysteel Global, saying the reductions were in response to weak prices of scrap globally and the lackluster demand for finished steel from end-users.

With the latest adjustment, the mini-mill is offering its 13mm dia rebar at a four-year low of TWD 18,000/t exw for business discussions till this Friday, while its procurement price for local HMS (80:20) scrap reaches TWD 8,600/t, its lowest since early December 2020, according to the official.

Feng Hsin's decision was partly to reflect the weakness in global scrap prices delivered to Taiwan over the past week, Mysteel Global learned.

As of December 16, the price of US-sourced HMS (80:20) scrap was reported at $290/t CFR Taiwan, down for the eighth consecutive week by another $5/t on week and marking the lowest since November 2020. By contrast, the price of Japan-origin H2 scrap is proving more resilient, staying at $310/t CFR Taiwan, unchanged from one week before, a local market source said.

Taiwan's rebar prices have lost ground recently due to the impact of low-priced billet imports from Russia. Meanwhile, rebar demand from Taiwan's end-users has remained weak, placing more pressure on local rebar prices, the Feng Hsin official explained.

Meanwhile, over the past week rebar prices in the Chinese mainland remained firm overall, buoyed by market expectations that the central government may implement new policies to expand domestic demand and boost growth, as reported. The optimism has faded somewhat, however, due to weak fundamentals, Mysteel Global noted.

As of December 16, the national price of HRB400E 20mm dia rebar, a pointer to China's steel-market sentiment, was assessed by Mysteel at RMB 3,510/t ($482/t) including the 13% VAT, higher by RMB 41/t on week though the price had retreated by RMB 23/t from the recent high on December 12.

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