China Steel Corp (CSC, 中鋼) yesterday said it would raise domestic steel prices by up to NT$1,200 (US$37.61) per tonne for delivery next month and next quarter, to reflect rising raw material costs and align with price hikes by regional peers.
The latest adjustments by nation’s largest steel maker follow a price increase of between NT$500 and NT$900 per tonne for delivery this month and a hike of NT$300 per tonne last month. Fubon Securities Investment Services Co (富邦投顧) had estimated an increase of between NT$500 and NT$1,000 per tonne.
“Asian currencies have been depreciating against the US dollar lately, and the New Taiwan dollar has even dropped by more than 4 percent in the past three months. This has pushed up the costs of raw materials for steel mills,” CSC said in a statement.
PHOTO: REUTERS
As major Asian steel mills have raised steel prices for delivery in the fourth quarter to reflect rising costs of iron ore and coking coal, the restocking demand is expected to emerge in the US and Europe by the end of the year, while consumption for steel used in vehicles continues to strengthen, CSC said.
It added that the global steel market is showing signs of an upward momentum.
The company said it would increase prices for major steel items — such as electrical sheets, hot-rolled steel plates and coils, cold-rolled steel coils, electro-galvanized and hot-dipped, zinc-galvanized steel coils — by NT$500 per tonne for delivery next month.
Price hikes are expected to be even bigger in the next quarter, ranging between NT$1,000 and NT$1,200 per tonne for steel rods, steel plates used in vessels and cold-rolled coils for steel buckets, while automobile steel would rise by NT$500 per tonne, it said.
The company’s price increases come as South Korea’s POSCO raised hot-rolled steel prices by US$38 per tonne for delivery next month, CSC said.
China’s Baowu Steel Group Ltd (寶武鋼鐵), Anshan Iron and Steel Group Corp (鞍山鋼鐵) and Benxi Iron and Steel Group Co (本溪鋼鐵) have also marked up their thin plate steel products by US$7 to US$14 per tonne for domestic shipments next month, it added.
Last week, CSC reported that consolidated revenue last month decreased 15.77 percent year-on-year to NT$30.55 billion, and cumulative revenue in the first eight months fell 24.3 percent to NT$245.47 billion.
The company yesterday said it was confident in its revenue outlook in light of a gradual recovery in the global economy, potential inventory replenishment by customers and an uptrend in global steel prices.
It added that the fourth quarter is historically a high season for the industry.
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