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Steel Rebar Market Faces Price War Amid Divergent Raw Material Costs
Non-Energy Minerals · Steel · economic_daily · 2026-10-19
2015
The steel rebar market is struggling with high scrap costs and weak demand for semi-finished billets, squeezing profit margins for electric arc furnace mills.
What Happened
Market Conditions: The steel rebar market is currently embroiled in a price war, characterized by high scrap metal costs and weak demand for semi-finished billets. Electric arc furnace steelmakers, including Feng Hsin and others, are adopting a cautious approach as they face the dual pressure of stubborn raw material costs and falling finished product prices.
Raw Material Trends: International scrap steel prices remain supported by firm pricing strategies from U.S. and Japanese suppliers, preventing a significant decline in import costs. Conversely, the Asian billet market lacks upward momentum due to sluggish demand for finished steel, resulting in range-bound price fluctuations.
Industry Challenges: A divergence between raw material and finished product prices has emerged in the Taiwan market. Reports of low-priced bulk transactions in the south, significantly undercutting major central mills, highlight the intense pressure steelmakers face due to insufficient end-user demand.
Future Outlook: Industry analysts expect scrap prices to remain elevated in the short term, while billet prices are likely to remain weak. If rebar prices continue to decline, the processing margins for steel mills will likely be further compressed, intensifying market competition.