Taiwan's Feng Hsin keeps Rebar, Scrap Prices Stable

Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, Central Taiwan, has decided to roll over its rebar list price and buying price for locally sourced scrap for a third straight week over November 18-22, a company official confirmed on November 19.

Thus, Feng Hsin will continue to hold its list price for 13mm dia rebar at TWD 15,700/tonne ($515/t) till this Friday, and for now, the mini-mill's buying price for locally-sourced HMS 1&2 80:20 scrap still hovers at TWD 7,300/t, according to the official.

Mini-mills in Taiwan usually adjust their scrap buying prices and rebar sales prices in reference to changes in the global scrap market, Mysteel Global notes. However, Feng Hsin has decided to hold its procurement price for locally-sourced scrap this week as the company would like to maintain its rebar sales prices at the current level to facilitate sales, even though scrap prices in the global market have firmed continuously over the past week, Feng Hsin's official told Mysteel Global.

As of November 18, US-sourced HMS 1&2 80:20 scrap, a key reference for Taiwan's scrap and rebar markets, was reported at $245/t CFR Taiwan, gaining another $3/t week on week or jumping $20/t compared with the recent low in mid-October. Meanwhile, Japan-origin H2 scrap was priced at $259/t CFR Taiwan as of Monday, marking a rise of $7/t week on week or $19/t month on month, Mysteel Global learned from the local market.

"We plan to adjust our purchasing price for (locally-sourced) scrap after seeing whether there has been a recovery in the local construction steel market," Feng Hsin's official explained. "For the moment, the price rise (in locally sourced scrap) will undoubtedly raise our production cost but bring no advantage to rebar sales," he told Mysteel Global.

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