Taiwan's Feng Hsin hikes rebar list prices by $6/t

Mysteel Global: Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to raise its rebar list prices by TWD 200/tonne ($6.2/t) for transactions over October 7-11, while its local scrap procurement prices will keep stable, according to a company official.

With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 18,300/tonne ($572/t) EXW for business negotiations till this Friday, while its buying price for local HMS 1&2 80:20 scrap stays unchanged at TWD 9,100/t, he confirmed.

Feng Hsin is rolling over its procurement prices of local scrap to monitor market changes in the coming term, given the overall steadiness of prices of global scrap delivered to Taiwan, Mysteel Global noted.

As of October 7, the price of US-sourced HMS 1&2 80:20 scrap was reported at $310/t CFR Taiwan, the same level as during the prior week, while the price of Japan-origin H2 scrap had recovered slightly by $2/t on week to reach $315/t CFR Taiwan, a local market source said.

However, rebar prices on the Chinese mainland grew fast from late September and have remained firm so far, boosting the sentiment in Taiwan's steel market to some extent and encouraging local mini-mills to raise their rebar list prices accordingly.

As of September 30, the last working day on the Chinese mainland before the National Day holiday over October 1-7, the national price of HRB400E 20mm dia rebar, a pointer to China's steel-market sentiment, was assessed by Mysteel at Yuan 3,944/tonne ($559/t) including the 13% VAT, the highest since March 4.

Market participants are cautious about China's steel market after the long break, as more Chinese steelmakers have ramped up production to enjoy their improved profit margins, Mysteel Global learned. Rebar inventories held by both Chinese mills and traders have accumulated due to the thin sales during the holiday.

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