Posted on 11 Jan 2023
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to roll over its rebar list prices and buying prices for local scrap for transactions over January 9-13, despite the further rise in global scrap prices, a company official confirmed on Monday.
For business discussions till this Friday, Feng Hsin continues to offer its 13mm dia rebar at TWD 20,500/tonne ($672.4/t) EXW, the same level from one week before, according to the official. The mini-mill's buying price for local HMS 1&2 80:20 scrap also stays unchanged on week at TWD 11,500/t for procurement this week.
Scrap prices in the global market have been steadily increasing lately, with the price of US-sourced HMS 1&2 80:20 material rising to $393/t CFR Taiwan as of January 9, up for the seventh consecutive week by another $8/t from one week before. During the same period, the price of Japan-origin H2 scrap also posted an on-week rise of $10/t to touch a four-month high of $415/t CFR Taiwan, according to a local market source.
Feng Hsin's rebar sales performed well last week, buoyed by the rise in global scrap prices. Meanwhile, many local contractors are accelerating the pace of construction before the Chinese New Year holiday which will start in late January this year, hoping to complete their projects ahead of the break. This is boosting rebar consumption and lending some support to the local steel market, Mysteel Global noted.
However, the company was in no hurry to lift its rebar list prices this week, considering the rises it has pushed through over the prior several weeks. Last week for example, Feng Hsin raised rebar list prices by TWD 200/t for transactions over January 3-6, as Mysteel Global reported. "New orders from local end-users may shrink gradually as the Chinese New Year holiday is around the corner," the official explained.
As for China's steel market, prices of rebar grew steadily with the positive sentiment in the domestic market, though demand from local end-users has also weakened gradually with the looming CNY break.
For example, the national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at Yuan 4,225/tonne ($624/t) including the 13% VAT as of January 9, gaining another Yuan 36/t on week and marking the highest since August 29.
Source:Mysteel Global
