Posted on 17 Jan 2024
China Steel Corp (CSC), Taiwan's largest steel mill headquartered in Kaohsiung in southern Taiwan, has decided to raise its list prices of major carbon steel products for local sales in February to partly reflect its higher operating costs, according to the company's latest release on its website.
Prices of major steelmaking raw materials have moved higher, lifting production costs, CSC said in the release, noting that iron ore prices have climbed to a 1.5-year high of $145/tonne and prices of metallurgical coal are also staying at a high level of $330-340/t.
Besides, global steel demand is expected to gain some support with the easing of inflation and the worldwide recovery in manufacturing, the company noted.
For example, construction steel demand in North America may recover thanks to policies to promote infrastructure development there, and steel consumption in the auto sector may also increase with the climb in auto output and sales, it said.
As for the market in mainland China, the government has adopted a moderately easy monetary policy to accelerate the construction of affordable housing, urban village renovation and public infrastructure, which may lend some support to demand for construction steel. The country's auto production also exceeded 30 million units in 2023, boosting the manufacturing sector's recovery.
Meanwhile, some overseas steel buyers have returned to the market for advance replenishment, as the attacks on vessels plying the Red Sea by the Houthi rebel group in western Yemen have forced shippers to find alternate routes that have extended sailing schedules, according to CSC.
Global steel supply has shrunk, and steel production and inventories in China have decreased significantly. Steel prices in international markets continue to rise, and major steelmakers have lifted their new-round list prices recently, the company pointed out.
However, in order to help its steel customers win more orders, CSC is tempering its price hike for February sales, as its customers' new orders from local and overseas buyers have not fully recovered, and February is a short month with fewer working days due to the long break to celebrate the Chinese New Year, the company said. The increases it has announced cannot cover the rise in its production cost, CSC maintained.
CSC's price adjustments of selected products for Feb sales
Product | Price Change (TWD/t) | Notes |
Hot-rolled coil | 300 | M-o-M |
Cold-rolled coil | 300 | M-o-M |
Electrolytic galvanized coil (fingerprint resistant/construction) | 300 | M-o-M |
Electrical steel coil | 0 | M-o-M |
Hot-dipped galvanized coil (for white goods, computers etc.) | 300 | M-o-M |
Source: CSC
Source:Mysteel Global
