China Steel Corp (CSC, 中鋼), the nation’s largest steelmaker, yesterday raised domestic steel prices for delivery next quarter by an average of 6.1 percent, the steepest increase in more than three years, as global economic recovery boosts demand.
Prices are to increase across the board by NT$1,200 (US$42.19) or NT$1,500 per tonne, depending on the product, from this quarter, the company said in a statement, adding that it expects the uptrend to continue in the near term, given severe supply constraints worldwide.
The global steel industry is seeing a V-shaped recovery in the fourth quarter, as a stronger-than-expected rebound in the housing and auto industries is propelling the price of steel products and iron ore — the raw material used to make steel — the Kaohsiung-based steelmaker said.
Photo: Lin Ching-hua, Taipei Times
“Supply has become significantly lower than demand due to strong demand to replenish inventories and customer requests for earlier deliveries worldwide,” the company said.
The rebound is a stark contrast to the first half of this year, when the COVID-19 pandemic stalled business activity and shut down most steel mills.
The latest price hike is a response to rising manufacturing costs, China Steel said, adding that iron ore prices have soared to a seven-year high of US$158 per tonne, significantly increasing manufacturing costs.
Coal prices are also on the rise, it added.
The price adjustments match a pricing strategy adopted by Chinese peer Baoshan Iron & Steel Co (寶鋼), which raised its prices for hot-rolled steel for delivery next month by US$61 per tonne, China Steel said in the statement.
Baoshan increased its prices for other products at a steeper rate, by US$77 to US$123 per tonne, it added.
Formosa Ha Tinh Steel Corp (河靜鋼) in Vietnam is also expected to raise its prices significantly, to reflect higher manufacturing costs and the market uptrend, China Steel said.
There have been drastic increases globally in the price of hot-rolled steel — US$1,000 per tonne in the US, US$700 per tonne in Europe and US$650 per tonne in Asia — it said.
China Steel has increased the price of hot-rolled steel sheets and hot-rolled steel coils for delivery next quarter by NT$1,500 per tonne.
The company reported that pretax profit last month increased about 75 percent to NT$2.36 billion from NT$1.35 billion in October.
During the first 11 months of this year, pretax profit plunged 98 percent to NT$219.25 million from NT$13.82 billion a year earlier.
The company returned to profit on a pretax basis beginning in August.
Revenue fell 16 percent to NT$284.18 billion in the January-to-November period from NT$337.14 billion in the same period last year.
UNWANTED ATTENTION: In the past two months, the automaker has made headlines, with a Chinese military ban of its vehicles and a protest at an expo Electric vehicle maker Tesla Inc, facing scrutiny in China over safety and customer service complaints, is boosting its engagement with regulators and beefing up its government relations team, industry sources said. Tesla’s change of strategy leading to more behind-the-scenes interaction with policymakers in Beijing compared with relatively little previously shows the seriousness with which the US automaker views the setbacks in its second-biggest market. TALKING SHOP It also comes at a time when China is trying to regulate large and powerful private companies, especially in the technology sector, on concerns about their market dominance. As they do elsewhere, regulators in China, the world’s biggest
Dell Technologies Inc has agreed to sell its Boomi cloud business to private equity firms Francisco Partners and TPG in a cash deal valued at US$4 billion, as part of efforts by chief executive officer Michael Dell to trim down the PC maker. The deal is expected to close by the end of this year, the companies said in a statement on Sunday without providing additional details of the terms. Dow Jones had earlier reported that the companies were near a deal. Boomi specializes in integrating different cloud platforms for companies and has more than 15,000 customers. Dell agreed to acquire the company for
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that it is considering further capacity expansion as customers are requesting more capacity due to rising end-market demand and persistent supply constraints. The Hsinchu-based company said that emerging technologies and applications from 5G, artificial intelligence and electric vehicles are driving semiconductor demand. The semiconductor industry has a positive outlook for this year and beyond, with shipments of all diameters of wafers to increase through 2023, GlobalWafers said. “We have received requests for expansion from many strategic partners. We are now in discussions with customers,” company chairwoman Doris Hsu (徐秀蘭) told a
XSEMI: The new venture would consolidate the strengths and resources of the two market leaders to secure chip supply and offer clients total solutions, the partners said Hon Hai Precision Industry Co (鴻海精密) and Yageo Corp (國巨) yesterday signed an agreement to form a joint venture called XSemi Corp (國瀚半導體) to develop” small ICs” priced under US$2 per unit, marking the latest effort by Hon Hai to bolster its foothold in the semiconductor market. The collaboration fits into Hon Hai’s plans for expansion by providing a steady supply of small semiconductors, while also serving the global market, the companies said in a joint statement. The new company, to be located in Hsinchu, would “consolidate the strengths and resources of the two market leaders” to provide a “complete semiconductor