Posted on 06 Jul 2022
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to cut its rebar list prices and procurement price for locally-sourced scrap by another TWD 300/tonne ($10.1/t) on week for transactions over July 4-8, to monitor the near-term market development, a company official confirmed on July 5.
With the latest adjustment, the mini-mill in Taiwan is now offering its 13mm dia rebar at TWD 21,300/t EXW for the business discussion till Friday, down for the third consecutive week with a total decrease of TWD 2,000/t and marking the lowest since late January. Meanwhile, its buying price for local HMS 1&2 80:20 scrap has been lowered to TWD 11,300/t, according to the official.
"Scrap prices in the global market, especially those for US-sourced scrap, have seen signs of stabilizing as buyers from Turkey had returned to the market recently," the official explained.
As of July 4, the price of US-sourced HMS 1&2 80:20 scrap had taken a pause after the sharp fall over the prior two weeks, staying unchanged on week at $370/t CFR Taiwan, while the price of Japan-origin H2 scrap continued easing to $390/t CFR Taiwan, down by another $40/t from one week before, according to a local market source.
Feng Hsin's rebar sales had improved somewhat last week. "Some end-users finally placed new orders when we gave them some discounts on the basis of list prices," the official told Mysteel Global, adding that trade silence seen in the past one and a half month had been broken at last.
Major steel producers in China had also lowered their scrap buying prices recently, due to the decrease in scrap consumption and weak demand for finished steel, Mysteel Global noted.
For example, Shagang Group, China's leading electric-arc-furnace steelmaker headquartered in East China's Jiangsu province, had cut its scrap buying price by another Yuan 50/tonne ($7.5/t) on July 4. It was the company's sixth price cut since June 16, as reported.
Source:Mysteel Global
