Feng Hsin Steel has decided to lower its rebar list prices and procurement prices for locally-sourced scrap for transactions over April 25-29 after noting the continuous fall in global scrap prices, a company official confirmed on Tuesday.
In business discussions till this Friday, the mini-mill's list price for 13mm dia rebar falls to TWD 24,700/tonne ($844/t) EXW, down TWD 400/t on week after staying at TWD 25,100/t for more than one month. Feng Hsin's buying price for local HMS 1&2 80:20 scrap declines to TWD 14,400/t, down another TWD 300/t this week after the decrease of TWD 300/t last Thursday, according to the company official.
"The decision was taken mainly to reflect the continuous decline in global scrap prices, though the drop in iron ore prices also aggravated the negative sentiment in Taiwan's steel market," Feng Hsin's official explained.
Although rebar consumption remains steady in Taiwan's tradition peak season in April, local end-users were inactive in placing new orders recently after noting the weakness in prices of steelmaking raw materials such as scrap and iron ore, Mysteel Global was told.
As of April 25, the price of US-sourced HMS 1&2 80:20 scrap had undergone a significant fall to settle at $540/t CFR Taiwan, sliding for the third consecutive week by another $20/t on week, while the price of Japan-origin H2 scrap dropped by $19/t during the same period to reach $560/t CFR Taiwan, according to a local market source.
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