Taiwanese Feng Hsin Steel announces to cut its rebar price by TWD 200 per tonne to TWD 20,500 per tonne for this week. Additionally, the firm kept the local prices of scrap and section steel steady at TWD 13,600 to TWD 14,400 per tonne and TWD 21,800~TWD 22,000 per tonne respectively.

The demand for rebar seemed slack due to high price, according to mills estimation. Thus, Feng Hsin reduces its rebar prices to spur buyers to place orders.

However, mills concern about the price down that could make buyers stay in wait and see position. Meanwhile, the hectic scrap price in global market would force steelmakers into the dilemma.

For the scrap market, market participants believe the scrap distributors will increase their offers for mills to lower the cash flow before upcoming 2012.

(Sourced from www.yieh.com)