China Steel Corp (中鋼), the nation’s biggest steel producer, yesterday said it would keep its domestic steel prices for December shipments unchanged because of disappointing demand from China’s October shopping season.
That will still raise the firm’s average selling price this quarter higher than last quarter, China Steel vice president Steve Lee (李慶超) said.
Previously, China Steel hadraised domestic steel prices for October and November shipments by 1.86 percent.
Overall shipments this quarter are expected to grow to 2.9 million tonnes based on information from China Steel’s clients, compared with 2.3 million tonnes last quarter, another China Steel vice president Liu Jih-gang (劉季剛) said by telephone.
“The sales during the Golden Week this year were relatively flattish. Inventories have risen slightly,” Liu said about the demand in China.
In the past, sales of home appliances and cars usually surged during the shopping season in October, which in turn boosts steel demand, Liu said.
China Steel said global steel prices are expected to remain high in the short term as the world’s major steel producers in the US, Japan and Europe plan more price hikes.