Posted on 08 Feb 2023
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided roll over its rebar list prices for business discussions over February 6-10, while buying prices for locally sourced scrap have been hiked again to reflect the continuous rally in global scrap prices, a company official confirmed on Tuesday.
With the latest adjustments, Feng Hsin continues to offer its 13mm dia rebar at TWD 21,200/tonne ($706/t) EXW for business deals till this Friday, the same level as last week, according to the official. During the same period, the mini-mill's buying price for local HMS 1&2 80:20 scrap rises to TWD 12,600/t this week, higher by another TWD 200/t on week and marking the highest since late June 2022.
The further increase in Feng Hsin's scrap buying price was mainly in response to firm global scrap prices, Mysteel Global learned.
As of February 6, the price of US-sourced HMS 1&2 80:20 material refreshed a seven-month high at $420/t CFR Taiwan, increasing by another $10/t on week, while the price of Japan-origin H2 scrap stayed unchanged on week at $435/t CFR Taiwan, also the highest since late June 2022, according to a local market source.
The mini-mill has decided to hold its rebar list prices this week to monitor market changes, as demand from local end-users has not fully recovered after the Chinese New Year holiday.
"We received some new orders (for rebar) last week when we conceded some of our sales margin during actual business negotiations," the company official said. However, the company has ceased offering any concessions this week because of the persistent rise in scrap prices, he added.
Steel prices in mainland China retreated slightly over the past week due to the weak demand from end-users, with the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment under Mysteel's assessment, reaching Yuan 4,275/tonne ($630/t) including the 13% VAT as of February 6, lower by Yuan 63/t from one week before.
Source:Mysteel Global
