China Steel Corp (CSC, 中鋼), the nation’s biggest steelmaker, yesterday hiked prices for major steel products for a second straight month for domestic deliveries next month, but held prices steady for next quarter’s shipments as demand and supply start to rebalance during the high season.
The Kaohsiung-based steelmaker raised the prices of regular hot-rolled steel plates, steel coils and cold-rolled coils by NT$500 (US$16.61) per tonne, while leaving the prices unchanged for other steel items used in construction, PCs and home appliances, a company statement showed.
The price increases bode well for the steelmaker to improve its profitability after falling into the red since April amid slumping demand. CSC accumulated NT$2.41 billion in losses in the first seven months of this year.
Photo courtesy of China Steel Corp
“As the industry enters its hot season in the fourth quarter, we see that customers’ inventory digestion is approaching an end. Demand and supply are moving toward balance again,” the company said. “Overall, the steel industry is stabilizing and advancing.”
As some local customers such as bolts and nuts producers are struggling to receive new orders, CSC said it would keep quarterly price quotes unchanged for domestic deliveries next quarter.
About 64 percent of its steel shipments go to local customers, it said.
CSC said business investment sentiment is improving as US tariff uncertainties ease and economic prospects become clearer.
The government’s statistics agency upgraded Taiwan’s GDP growth forecast to 4.45 percent for this year on robust exports and better private consumption, it said.
CSC’s price hikes are in line with stabilizing steel prices in the US and mild price increases for hot-rolled steel in the EU, backed by recovering demand following a summer break and import curbs, it said.
In Asia, China’s Baoshan Iron & Steel Co (寶鋼) retained steel plate prices unchanged for next month as supply pressure mounted last month, while Vietnam’s Formosa Ha Tinh Steel Corp (台塑河靜鋼鐵興業) hiked hot-rolled steel prices for a second consecutive month, CSC said.
CSC attributed the gradual improvement in global steel prices to uptrends in raw material costs, with iron ore rising to more than US$105 per tonne and coking coal climbing to between US$185 and US$190 per tonne.
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