For business deals till this Friday, the mini-mill will continue to offer its 13mm dia rebar price at TWD 21,500/tonne ($778/t) EXW, the same level since mid-December, and its procurement price for local HMS 1&2 80:20 scrap has also stayed unchanged at TWD 11,700/t for the seventh straight week.
Feng Hsin's decision was mainly to draw buying interest among local rebar end-users, though the prices of imported scrap to Taiwan had shown some signs of recovery over the past week, Mysteel Global noted.
As of December 27, the price of US-sourced HMS 1&2 80:20 scrap came in at $450/t CFR Taiwan, reversing up $5/t on week after sliding for two weeks, and the price for Japan-origin H2 scrap posted a sharper on-week growth of $10/t to $485/t CFR Taiwan, ending the continuous fall over the prior three weeks, according to the Taiwanese market source.
The strengthening prices of imported scrap to Taiwan may lend some support to the regional steel market and improve sentiment among local steel producers.
Meanwhile, rebar consumption is expected to keep firm in the coming month as many local contractors usually quicken their pace of construction, hoping to complete the projects ahead of the Chinese New Year holiday, Mysteel Global understands.
Chinese scrap prices continued to strengthen over the past week on the support of firming demand from domestic steel mills, with Mysteel's steel scrap price index growing for the fifth straight week to reach Yuan 3,576.9/tonne ($562/t) on delivery and including the 13% VAT as of December 27, gaining another Yuan 111.4/t on week.
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