Taiwan: Feng Hsin cuts rebar, scrap prices amid weak demand

• Lower construction steel trading reflects weak demand
  
  
• Local HMS 80:20 buying price reduced
  
  

Mysteel Global: Taiwan's largest rebar producer, Feng Hsin Steel, headquartered in Taichung in central Taiwan, has decided to cut its rebar list price and buying price of local scrap by TWD 200/tonne (t) ($6/t) respectively for transactions over 1 June-5 june, according to a company official.

With the latest adjustment, Feng Hsin is offering its 13mm-diameter rebar further lower at TWD 18,700/t ($594/t) EXW for business discussions through this Friday, while its buying price for local HMS 80:20 scrap reaches TWD 10,100/t ($321/t), the mill's first cut for the feedstock since the start of last November, the official confirmed.

Prices of global scrap delivered to Taiwan have weakened recently, shaking the cost support for steel and persuading mini-mills on the island to cut their procurement prices of local scrap and rebar list prices accordingly, Mysteel Global learned.

As of 1 June, the US-origin HMS 80:20 scrap was reported at $360/t CFR Taiwan, falling by $4/t from one week before and ending the continuous rally since the beginning of this year. No quotation for Japanese H2 scrap had been available over the prior week, according to a local market source in Taiwan.

Meanwhile, the weakness in rebar demand from end-users also aggravated the negative market sentiment and put some pressure on Taiwan's rebar prices, Mysteel Global noted.

Rebar prices in the Chinese mainland have remained under pressure from thinning downstream demand recently as the market enters a summer lull, although firming coking coal and coke prices provide some cost-side support.

For example, China's national price for HRB400E 20mm rebar was assessed by Mysteel at RMB 3,431/t ($507/t) including 13% VAT on 1 June, falling by RMB 36/t ($5/t) from one week before.

Mysteel's survey showed that the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 trading houses nationwide under its tracking averaged 91,530 t/day over 26 May-1 June, lower by 327 t/d on week.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.