Feng Hsin to Shift Higher Grade Products

Taiwanese major electric furnace steel maker, Feng Hsin Iron & Steel tires to improve the profitability by shifting higher grade special steel bar products. The president Ming Jiu Lin said to a reporter of Japan Metal Bulletin the firm increases high grade special steel products by improving the own technology and by importing high grade billet from Japan. With firm demand, the firm expects the production of the products increases in 2011 slightly from 1.6 million tonnes in 2010. The firm focuses on export to offshore shifting manufacturers under slow domestic construction market when the firm expands the output capacity in 2012 by adding new reheat furnace and expanding continuous caster.

The sole special steel bar maker in Taiwan increased the products output by around 20% to 1.6 million tonnes in fiscal 2010 from 2009. The products mix was 30% for special steel bar and coil mainly for structural steel products including cold forging material, 40% for concrete reinforcing steel bar and 30% for sections. The firm checks billet from Japanese special steel maker to improve the quality. The firm expanded the special steel bar size range to 150 millimeters diameter to develop market.

The firm has around 15% of domestic rebar market. The firm started to make SD490 grade products in 2009 to increase the grade range. The rebar production is firm in April-June when the domestic demand will increase by 10% to 5.5 million tonnes with higher civil works and capital expenditure in private sector.

The firm increases the continuous caster’s strand from 4 to 5 while the production increase is limited due to annual 1.7 million tonnes of electric furnace steel making capacity. The firm tries to improve the quality to meet the needs when the domestic demand is peaking. The firm purchases ferrous scrap at half from domestic market and another half from foreign areas including USA, Japan and Hong Kong. The firm tries to secure the margin by adjusting the selling price flexibly when the scrap market fluctuates in short period of time.