Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, central Taiwan, has decided to raise its rebar list prices and procurement prices for locally-sourced scrap for business over March 7-11, mainly due to higher prices in the global scrap market and better demand from local end-users, a company official confirmed on Tuesday.
With the latest price adjustment, the mini-mill is offering its list price for 13mm dia rebar at TWD 23,000/tonne ($813/t) EXW, higher by TWD 700/t on week after staying at TWD 22,300/t for three weeks, and its buying price for local HMS 1&2 80:20 scrap gained TWD 500/t on week to TWD 13,300/t, according to the official.
One major reason for Feng Hsin to make the latest price hike is the significant rise in global scrap prices, Mysteel Global learned.
As of March 7, the price of US-sourced HMS 1&2 80:20 scrap came in at $505/t CFR Taiwan, up $15/t from one week before, and the price of Japan-origin H2 scrap also posted an on-week rise of $11/t to a 4.5-month high of $545/t CFR Taiwan, according to a local market source.
Meanwhile, rebar demand from local end-users remained firm, boosting the positive sentiment of steel mills in Taiwan. "They (end-users) have to accept higher rebar prices and return to the market for replenishment after noting the recent surge in scrap prices," the official said.
Moreover, China's square billet prices grew sharply during the past week, which had also lent some support to the steel market in Taiwan, he added.
For example, the Tangshan Q235 150mm square billet price in North China's Hebei province was assessed by Mysteel at Yuan 4,810/tonne ($761/t) EXW and including the 13% VAT as of March 7, up Yuan 260/t on week and marking the highest since November 8 2021.
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