Taiwan's Feng Hsin Keeps Rebar, Scrap Prices Stable

Feng Hsin Steel, Taiwan's largest rebar producer in Taichung, Central Taiwan, has decided to roll over its rebar list price and buying price for locally sourced scrap for the November 4-8 week, a company official confirmed on November 5.

Thus, Feng Hsin will continue to sell its 13mm dia rebar at TWD 15,700/tonne ($2,240/t) till this Friday, and the mill's procurement price for locally sourced HMS 1&2 80:20 scrap still hovers at TWD 7,300/t for now, according to the official.

"We would like to hold the two prices (for rebar and local scrap) this week as scrap prices in the global market are also keeping stable for the time being after the continuous rally over the prior two weeks," Feng Hsin's official said.

Taiwan's steel market closely tracks international scrap prices, as local mini-mills usually adjust their rebar sales prices and locally sourced scrap buying prices based on the changes in the global scrap market, Mysteel Global notes.

As of November 4, US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan's scrap and rebar markets, was reported at $238/t CFR Taiwan, the same level as one week before, after rising by a total of $13/t during the previous two weeks. Japan-origin H2 scrap was also stable at $248/t CFR Taiwan as of Monday.

Demand from Taiwanese steel buyers slowed down last week, Mysteel Global learned from the local market. "They (construction contractors) were in no hurry to replenish after noting the price rise, as they had stocked enough product when rebar prices had been hovering at their more-than-two-year low," Feng Hsin's official said. "That is another important reason why we're keeping our rebar list price stable this week," he explained.