As per the latest updates, Taiwanese steel major China Steel Corp (CSC) has announced its decision to raise domestic steel prices for delivery in next quarter (Q3) by an average of TWD (Taiwanese Dollar) 426/MT (USD 14.23/MT) or 1.9% per tonne Q-o-Q basis amid rising international prices.
This increase marks the fourth consecutive price hike by CSC as for Q2 CY18, the company had hiked its prices by TWD 914/MT (USD 30.5/MT),4.2% Q-o-Q basis.
The company’s hot-rolled products prices have been raised by TWD 495/MT (USD 16.5/MT) while the prices of hot-dipped galvanised steel are to rise by TWD 163/MT (USD 5.45/MT).
After its quarterly meeting to decide domestic prices, CSC said that the major Chinese steelmakers, such as Baoshan Iron & Steel Co and Wuhan Iron and Steel Corp have also announced hike of USD 23 to USD 35/MT for hot-rolled items for next month’s shipments, while last month U.S. steel mills have raised hot-rolled product prices as high as to USD 970/MT and European steelmakers have boosted their prices between USD 670 and USD 700/MT. These price adjustments reflect an uptrend in global steel prices amid supply tightness by China and Japan, following which CSC has also hiked its prices.
With regards to growing trade protectionism especially by recently announced U.S. tariffs on steel, CSC said that it did not pass on higher costs to downstream companies to mitigate the effect of growing trade protectionism around the world.
However, amid this buoyancy in Taiwan due to increasing domestic demand with the infrastructure and economic recovery, there is increased risk of punitive tariffs from U.S. and EU and thus the company has decided to keep the prices of three products – electric steel coil, electro-galvanized steel coil and cold-rolled steel unchanged.
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