China Steel Corp (中鋼), the nation’s largest steelmaker, yesterday said that it would raise steel prices by 2.44 percent on average for shipments next month, as local customers accelerate inventory buildup amid improving demand during the high season.
The company is taking its cue from global peers, which have raised steel prices in response to improving demand from the construction and auto industries, as more countries gradually open their economies and plan to roll out new infrastructure projects in the second half of this year.
China’s Baowu Steel Group Ltd (寶武鋼鐵) and Angang Steel Co (鞍山鋼鐵) have raised domestic steel prices by between 200 yuan and 400 yuan (US$31.55 to US$63.11) per tonne for delivery next month, China Steel said in a statement.
Photo: CNA
That was the first price increase in eight months by the Chinese mills, the statement said.
Formosa Ha Tinh Steel Corp (台塑河靜鋼鐵興業) in Vietnam also raised prices for hot rolled steel and steel rods by US$90 and US$40 per tonne respectively in its latest price quotes, the statement added.
“The global steel industry’s fundamentals are improving with the arrival of the high season, leading to an acceleration in downstream buildup,” China Steel said.
“Global steel prices are returning to an upswing this year, fueled by higher manufacturing costs and better demand,” it said.
In Europe, steel demand has also picked up significantly, benefiting from a regional auto industry recovery, it said.
ArcelorMittal SA has secured long-term supply agreements with European automakers, with prices increasing by between 30 and 50 euros per tonne for its hot rolled steel and cold rolled steel plates, the statement said.
“A rebound in March is a turning point, indicating that the steel industry is moving toward an uptrend into the busy second quarter,” the Kaohsiung-based company said.
Global steel supply is moving in the opposite direction, as some Japanese and South Korean steel mills have cut production following the closure of several steel furnaces, China Steel said.
Chinese steelmakers have scaled down production to comply with Beijing’s restrictions on carbon emissions during the Beijing Winter Olympics, it said.
Increases in manufacturing costs are adding pressure to steelmakers, given record-high prices of iron ore, the major raw material for steel manufacturing, at about U$150 per tonne lately and metallurgical coal prices rising to about US$440 per tonne, China Steel said.
China Steel is raising steel prices by between NT$500 and NT$800 per tonne, following three straight months of cuts.
The prices of hot-rolled steel plates and coils, as well as cold-rolled steel coils, are to rise by NT$800 per tonne next month, while the price of hot-dipped galvanized coils used in construction is also to climb NT$800 per tonne, and that the price of hot-dipped galvanized coils used in home appliances and computers is to increase by NT$500 per tonne, the company said.
The prices of electro-galvanized coils and electrical steel sheets are to advance by NT$500 per tonne next month, it added.
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