Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung, central Taiwan, has decided to cut its rebar list price by TWD 400/tonne ($14.5/t) for sales over January 10-14 to facilitate sales, while its buying price for locally sourced scrap remained stable on the support of limited supply, a company official confirmed on Tuesday.
With the latest adjustment, Feng Hsin will offer its 13mm dia rebar price at TWD 21,100/t EXW for the business deals till this Friday after staying at TWD 21,500/t over the prior four weeks, and its procurement price for local HMS 1&2 80:20 scrap has remained unchanged at TWD 11,700/t for the ninth consecutive week, according to the official.
"We have to make such a decision this week as mini-mills in southern Taiwan have trimmed their rebar prices to facilitate sales, otherwise our prices will be less competitive in the market," the company official explained.
As of January 10, the price of US-sourced HMS 1&2 80:20 scrap continued declining to $440/t CFR Taiwan, losing another $5/t from one week earlier, and the price for Japan-origin H2 scrap also decreased by $4/t on week to $478/t CFR Taiwan, according to a local market source.
However, mini-mills still decided to roll over their procurement prices for locally-sourced scrap this week to encourage sales, as "the supply of imported scrap is not stable recently, while demand from local steelmakers is likely to stay firm in the near term," he added.
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