China Steel's profit up 37 percent in Q2

China Steel Corp (中鋼), Taiwan's biggest steelmaker, had a 37 percent gain in second-quarter profit after the company raised prices on increased demand.

China Steel had a second-quarter profit of NT$12.5 billion (US$367 million), compared with NT$9.1 billion a year ago.

Net profit in the first half rose a quarter to NT$22.6 billion, or NT$2.40 a share, from NT$18.2 billion, or NT$1.94. Sales in the period increased 22 percent to NT$76.1 billion from NT$62.5 billion.

The Kaohsiung-based steelmaker on Thursday said it's increasing prices on seven products in the fourth quarter, citing higher global prices and expanding domestic demand. The increases will range from NT$500 to NT$900 a tonne, the company said in a statement.

"Domestic demand for steel rose 10 percent in the first half," the company said. "There was a shortage of hot-rolled steel this summer."

The new prices will take effect on Wednesday.

The Kaohsiung-based company has raised prices every quarter since mid-2002 as strong demand from China drove up prices of the metal. More than a third of the company's exports go to China.

The price of hot-rolled steel will rise by an average NT$500 a tonne, China Steel said. Cold-rolled steel will rise NT$630 a tonne, and the price of hot-dip galvanized coils will increase by NT$710 a tonne.