Feng Hsin Steel has decided to trim its rebar list prices and procurement prices for locally-sourced scrap further for transactions over May 3-6 to reflect the sharp fall in global scrap prices, a company official confirmed on Thursday.
The mini-mill convened its weekly pricing meeting on Tuesday this week instead of the usual Monday due to the public holiday in Taiwan on May 1, Mysteel Global noted.
For business discussions till this Friday, the mini-mill's list price for 13mm dia rebar drops to TWD 24,200/tonne ($820/t) EXW, sliding by another TWD 500/t from the previous week, the company official confirmed. Its buying price for local HMS 1&2 80:20 scrap has been lowered to TWD 13,800/t, down another TWD 300/t this week after the decrease of TWD 300/t on April 30.
Scrap prices in the global market continued to drop sharply this week, encouraging Taiwan's local mini-mills to cut their procurement prices for locally-sourced scrap accordingly, Mysteel Global learned.
As of May 2, the price of US-sourced HMS 1&2 80:20 scrap was reported at $510/t CFR Taiwan, making for a substantial fall of $30/t on week and lower by a total of $70/t over the past one month, according to a local market source. The price of Japan-origin H2 scrap also dropped for the fourth consecutive week by another $20/t on week to reach $540/t CFR Taiwan, he said.
Rebar sales remained scarce in Taiwan this week though local mini-mills had lowered their offering prices. "No one wants to place new orders for the moment as scrap prices in the global market are expected to drop steadily with the weak demand, which may see Taiwan rebar prices dragged down further," the company official explained.
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