- Move comes amid rising steel tags internationally
- Curbs on flats imports may stabilise local market
Mysteel: China Steel Corp (CSC), Taiwan’s largest steel mill, has decided to hike the list prices of hot-rolled coils (HRCs) and cold-rolled coils (CRCs) for local sales in April in response to improved global economic situations and rising steel tags in international markets, according to the company’s latest release on its website on 18 March.
For local sales in April, CSC’s list prices of HRCs increased by TWD 500-600/tonne (t) ($15-18/t) from March. Meanwhile, CRC prices were lifted by TWD 500/t m-o-m. Additionally, the company also decided to hike its list prices of bars and wire rods by TWD 600/t for local sales over April-June, the release showed.
One major reason behind the Taiwanese steel giant’s latest price adjustment is the better economic performance in both Taiwan and overseas, which has boosted sentiment in the island’s local steel market.
Taiwan’s economy is expected to continue growing this year. In overseas markets, the US economy is likely to remain in a healthy position, and the prospect of peace talks between Russia and Ukraine could help ease geopolitical risks. Parallelly, the European Central Bank has implemented two interest rate cuts so far this year, which may facilitate demand recovery in the region, per the release.
The second-largest economy in the world, China, kept an economic growth target of 5% for 2025. The Chinese government has also reinforced stimulus policies aimed at boosting employment and increasing spending on people’s livelihood, which are expected to invigorate economic momentum, according to CSC.
Strengthening steel prices in international markets also offered CSC confidence to raise prices. The company pointed out that US steel prices have surged nearly 30% since mid-February, with HRC prices exceeding $1,000/t exw, following President Donald Trump’s announcement of a 25% tariff on all steel and aluminium imports, effective 12 March.
Meanwhile, market participants expect that China may take measures to control steel production capacity and achieve green manufacturing, which may help balance steel supply and demand in the future.
For local sales in April, Baoshan Iron & Steel Co, the listed arm of the world’s top steelmaker China Baowu Steel Group, has decided to roll over its list prices of carbon steel HRC after a hike of RMB 100/t ($13.8/t) for March sales.
On 11 March, Taiwan’s Ministry of Finance launched an anti-dumping (AD) investigation into certain flat hot-rolled steel imports from the Chinese mainland, which may help stabilise the local steel market, CSC noted, adding that it may put forward necessary trade remedy measures for steel products suspected of dumping, such as electrical steel.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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