China Steel Corp (CSC, 中鋼), the nation’s largest steelmaker, yesterday hiked prices for all products for domestic delivery next month and next quarter to reflect rising material costs due to the conflict in the Middle East and improving steel demand.
The Kaohsiung-based company raised prices by NT$1,000 to NT$1,200 across the board, the largest price increase in nearly 17 months.
CSC attributed rising steelmaking costs to Middle East tensions, improving market momentum and active restocking by downstream clients to the price hikes, matching the global steel price uptrends, CSC said in a statement.
Photo courtesy of China Steel Corp
Tensions in the Middle East have pushed up crude oil prices past US$100 per barrel, driving up shipping and energy costs, and lifting commodity prices, CSC said.
Iron ore prices have risen to about US$110 per tonne, while coking coal prices have climbed to between US$220 and US$230 per tonne, the company said.
On the supply side, China’s dual controls on carbon emissions and intensity, along with restrictions on high energy-consuming and high-emission projects, have accelerated the phase-out of outdated capacity, CSC said.
Crude steel output in China in the first two months of the year declined by about 3.6 percent year-on-year, it said.
Global steel prices trended up as US steelmaker Nucor Corp raised hot-rolled steel prices by US$60 to US$70 per tonne, marking the ninth consecutive week and bringing steel to above US$1,100, the highest level in nearly two years, it said.
In Europe, steel prices went up by US$70 to US$80 to US$800 per tonne, while Japanese steelmakers raised domestic prices by about ￥10,000 (US$63) per tonne for the second quarter, CSC said.
China’s Baoshan Iron & Steel Co (寶鋼) has increased April domestic prices by 200 yuan (US$29) per tonne, bringing cumulative gains since January to 400 yuan, indicating a continued upward trend in global steel markets, it said.
To reflect higher steelmaking costs and align with international and domestic price trends, CSC decided to raise prices across all products for next month and the second quarter, it said.
Next month, prices for hot-rolled steel plates and coils, hot-rolled coils and cold-rolled coils would increase by NT$1,200 per tonne. Electro-galvanized coils, hot-dip galvanized steel coils for construction and coating, hot-dip galvanized steel coils for home appliances, as well as electrical steel coils, would rise by NT$1,000 per tonne, CSC said.
For the second quarter, prices of various types of steel and coils as well as steel used in automobiles, would rise NT$1,000 across the board, the steelmaker said.
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