China Steel Corp (CSC, 中鋼), the nation’s largest steelmaker, yesterday said it would keep prices intact for some products and make small increases for others next month, as end-market demand needs more time to recover and customers favor low inventory toward the year’s end.
Prices for hot-rolled steel plates, hot-rolled steel coil, cold-rolled steel coil, and steel coil would increase by NT$300 per tonne, the Kaohsiung-based company said.
However, prices would remain unchanged for electro-galvanized steel coils, electrical steel coils and galvanized steel coils used in home appliances and computers, it said.
Photo courtesy of China Steel Corp
CSC said it arrived at the decision after taking into consideration the presidential transition in the US and the introduction of stimulus measures in China.
CSC added it would adopt flexible measures to help upstream and downstream firms improve their business and capacity, in line with market trends and the principle of pricing stability.
The global steel market has observed mixed fortunes, with the global economy gaining momentum, but currency exchange rates and raw material prices have grown increasingly volatile, it said.
The US presidential election has come to a peaceful end, removing uncertainty over its outcome, the company said.
At the same time, China announced a 10 trillion yuan (US$1.3 billion) program to relieve debt pressures on local governments and provide room for fiscal stimulus measures next year, it said.
Overall, the global steel supply remains tight, but it would take some time for the manufacturing industry and end-market demand to emerge from the woods, it said.
US president-elect Donald Trump’s return to the White House might bring new US-China trade disputes that could weigh on Chinese exports, the steelmaker said.
Taiwan has imposed anti-dumping duties on China’s galvanized steel products with the case on hot-rolled steel under way, it said.
Local firms should avoid using China’s low-price steel raw materials in their finished products or semi-finished products to reduce the risk of entanglement in a US-China trade war, CSC said.
Such voluntary practices would lend the Taiwanese government a helping hand in its effort to seek an exemption from US steel tariffs, the company said.
According to the World Steel Association, global steel demand would climb 1.2 percent to 1.77 billion tonnes next year, or an increase of 20.6 million tonnes from this year, as the recovery gains traction.
China’s manufacturing purchasing managers’ index last month returned to expansion after a six-month hiatus, while US private consumption last quarter expanded 3.7 percent, accelerating from a 2.8 percent uptick three months earlier, favorable for Taiwan’s exports, CSC said.
Taiwan might put up a stable GDP growth of 3.15 percent next year, on top of a 4 percent increase this year, CSC added.
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