China Steel Corp (中鋼), the nation’s largest steelmaker, yesterday raised steel prices by as much as NT$900 per tonne for domestic deliveries next month as the Asian steel market is rebounding from a months-long downturn.
The Kaohsiung-based steelmaker said it was raising prices following price upticks by Asian peers on expectations that steel supply from China and South Korea is shifting to a lower gear this year.
Global crude steel supply in the first half of the year dropped 1.1 percent annually, it said.
Photo: Tyrone Siu, Reuters
To reflect tightening supply, Chinese peers Baowu Steel Group Ltd (寶武鋼鐵), the world’s biggest steelmaker, and Angang Steel Co (鞍山鋼鐵) raised the prices of hot-rolled, cold-rolled and electro-galvanized steel products by between 100 and 200 yuan per tonne for deliveries next month, China Steel said in the statement.
South Korean steelmaker POSCO also hiked the prices of hot-rolled steel by about US$39 per tonne for domestic shipments next month, in another sign indicating that the Asian market is turning bullish, China Steel said.
Aside from a supply-demand rebalance, China Steel said it is raising prices to reflect higher raw material costs and transportation costs.
The price of coking coal has breached the US$245 mark as supplies plunged due to floods in China and Beijing’s curbs on mining industries.
Transportation costs climbed as the Baltic Exchange Dry Index for vessels transporting dry bulk commodities surged 20 percent to 1,145 in the first half of this month from the trough late last month due to a recovery in commodity markets, the steelmaker said.
“Faced with Beijing’s curbs on steel production, Chinese steelmakers are likely to reduce dumping of lower-priced steel products on the global market,” China Steel said.
“As a result, the global steel market should be able to return to a supply-demand balance in the third and fourth quarters, helping steelmakers to post stable profits,” it added.
China Steel is raising prices by between NT$500 and NT$900 per tonne for next month’s shipments, compared with price increases of NT$300 per tonne last month for select items.
The prices of hot-rolled and cold-rolled plates would rise by NT$900 per tonne, while the price of galvanized steel coils used in construction materials would increase by NT$900 per tonne, the steelmaker said.
The price of galvanized steel coils used in computers and home appliances, as well as the price of electro-galvanized steel coils for construction materials, would climb by NT$600 per tonne, it said.
The price of electrical steel coils would be higher by NT$500 per tonne, it added.
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