China Steel to raise product prices on stronger demand

China Steel Corp (中鋼), the nation's biggest steelmaker, said it will raise prices for customers in the second quarter on strong demand from electronic appliance makers, automobile companies and shipbuilders.

The increases will range from NT$1,000 (US$32.10) to NT$2,100 a tonne on seven products and take effect from April 1, the Kaohsiung-based company said in an e-mailed statement today. The company didn't disclose current prices or the size of the increases in percentage terms.

"China Steel raised prices more than we expected," said Liu Lin-mei, who counts shares in the company among the equivalent of US$90 million she manages for First Global Investment Trust Co (金鼎投信) in Taipei. "Steel prices may still rise." Asian suppliers are lifting prices as demand remains strong and material costs increase. Baoshan Iron & Steel Co, the publicly traded unit of the world's sixth-largest steelmaker in China, today also raised second-quarter prices of major products.