China Steel Corp (CSC, 中鋼), the nation’s biggest steelmaker, yesterday announced that next quarter it would raise domestic prices for most steel products to reflect rising raw material costs.
It would hike the prices for benchmark hot-rolled sheets and coils by NT$490 per tonne and cold-rolled sheets and coils — which are used in the automotive industry — by NT$300 per tonne, the Kaohsiung-based steelmaker said in a statement.
The company would also increase the prices for electro-galvanized sheets by NT$300 per tonne, electrical sheets by NT$300 per tonne and hot-dipped, zinc-galvanized sheets by NT$350 per tonne, it said.
However, to support the export competitiveness of domestic downstream customers, the company has decided not to adjust the prices for steel bars and rods, and steel plates, it said.
“Low-priced steel products are no longer disrupting the global market, because the Turkish lira and Russian ruble are stabilizing, and their steel suppliers are reducing output due to maintenance,” the company said.
“In the meantime, major US steel mills; European steelmaker ArcelorMittal SA; and China’s Baoshan Iron & Steel Co (寶鋼), Wuhan Iron and Steel Corp (武鋼), and Angang Steel Co (鞍鋼) raised their prices at the beginning of this year, indicating that the market had bottomed out and is staging a rebound,” CSC said.
“In general, steel prices have increased by more than US$50 per tonne from the low levels seen last year, while the rising costs of coking coal and iron ore, buoyed by seasonal factors and mining accidents in Brazil, have pushed steel prices further up,” the company said.
CSC expects the recovery to extend into next quarter, citing healthy supply-demand dynamics in Japan, South Korean steel mills’ rising export prices and higher steel demand in China as Beijing launches incentives to combat an economic slowdown.
Trade tensions between the US and China have eased, helping buoy business confidence, it added.
The company’s latest move highlights how fast market dynamics have changed over the past three months. In late November, CSC slashed prices for some of its products for this quarter by between NT$300 and NT$900 per tonne, and gave a downbeat outlook for the year due to rising uncertainties about global trade.
CSC said it is now also positive about Taiwan’s steel market, as local demand should increase steadily this quarter and in the coming quarters thanks to public infrastructure projects and Taiwanese businesses moving their overseas operations home.
“Since downstream Taiwanese steel firms play a key role in the global supply chain, export orders for machine tools and motors in the second quarter are expected to restore demand and boost the market,” it said.
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their
‘NEW TRAVEL MARKET’: The carrier initially planned to lay off about 8,000 people globally, but after government intervention reduced that to 18 percent of its workforce Cathay Pacific Airways Ltd (國泰航空) would cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the unprecedented damage caused by the COVID-19 pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close today, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including about 5,000 jobs in Hong Kong, it said. The company, which posted a HK$9.9 billion (US$1.3 billion) loss in the first half, has for months
V-SHAPED RECOVERY: Local tech firms have benefited from strong demand for 5G deployment and electronic devices required for a low-contact economy, CIER said The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its forecast for the nation’s GDP growth this year to 1.76 percent, from its previous estimate of 1.33 percent, saying exports and private consumption have staged a V-shaped recovery from the COVID-19 pandemic in the second half of the year. “The upgrade aims to reflect the fast recovery in Taiwan’s exports and domestic demand,” CIER president Chang Chuang-chang (張傳章) told a media briefing. The Taipei-based think tank said the economy might have expanded 2.77 percent last quarter — emerging from a 0.78 percent decline in the second quarter — and would grow
Hon Hai Precision Industry Co (鴻海精密) founder Terry Gou (郭台銘) yesterday said that the company remains committed to its project in Wisconsin, but appeared to condition its completion on the receipt of state incentives, the Wall Street Journal reported. Gou said in a statement that Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, remains committed to its investment, although “market conditions and the COVID-19 pandemic” have altered the timing of its expansion and the specifics of its manufacturing plans. The company has over the past three years invested US$750 million to transform southeastern Wisconsin into a high-tech