Taiwan: Feng Hsin keeps rebar, scrap prices stable amid firm costs

• Taiwanese buyers adopt wait-and-see approach
  
  
• Chinese rebar prices strengthen on positive sentiment
  
  

Mysteel Global: Feng Hsin Steel, Taiwan's largest rebar producer and headquartered in Taichung in central Taiwan, has decided to keep its rebar list prices and local scrap purchase prices stable for transactions over 11 May-15 May, according to a company official. This marks the fourth consecutive week that the Taiwanese mini-mill has maintained the two prices, Mysteel Global notes.

For business discussions through until this Friday, Feng Hsin keeps its offer of 13mm-diameter rebar at TWD 18,900/tonne (t) ($601/t) EXW, the same level as one month before, and it continues to pay TWD 10,100/t ($320/t) for local HMS 80:20 scrap, unchanged since mid-April, the official confirmed.

Although prices of global scrap delivered to Taiwan continued the slight growth, rebar prices on the island lost the impetus to move higher after the fast rises seen from the start of March to early April, Mysteel Global was told.

As of 11 May, the price of US-sourced HMS 80:20 scrap was reported at $364/t CFR Taiwan, up slightly for the second week by $1/t on week. There was no quotation for Japan-origin H2 scrap, according to a local market source in Taiwan.

Rebar prices in the Chinese mainland strengthened continuously recently due to positive market sentiment and steady steel demand from downstream users. However, this has yet to alleviate the wait-and-see sentiment prevailing in Taiwan's steel market, Mysteel Global noted.

As of 11 May, China's national price of HRB400E 20mm rebar an indicator of the country's domestic steel-market sentiment was assessed by Mysteel at a 17-month high of RMB 3,508/t ($517/t) including 13% VAT, jumping by RMB 93/t ($14/t) from 30 April, the last working day before the May Day holiday over 1 May-5 May.

Rebar futures prices also post strong performance after the long break, with the most-traded contract on the Shanghai Futures Exchange for October delivery closing the daytime trading session on 11 May at RMB 3,286/t ($484/t), higher by RMB 82/t ($12/t) from the settlement price on 30 April.

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