China Steel will raise prices next month

China Steel Corp, the country's largest steelmaker, said yesterday it would raise domestic prices by 1.2 percent to reflect higher production costs and rising demand for steel after a two-month price freeze. The revised prices will take effect next month.

During the COVID-19 pandemic, the CSC raised steel prices by 12 months immediately before freezing them last month, citing concerns from processing companies and advising them to use the price freeze to adjust their business needs and "prepare for the coming changes." "

Asian steel prices have experienced a “short and healthy correction”, but the company expects a return to bullish steel prices.

Tensions are expected in the global steel market ahead of the traditional high season of September and October, the company said.

It says continued growth in Taiwanese exports and infrastructure projects in the US and Europe are other drivers of increased steel demand.

“We expect the core infrastructure needs of the US and the EU to drive global economic growth by boosting demand for steel products,” the statement said.

“Given the robust but strong overall direction of the steel market and the higher cost of ore and coking coal, we adjusted the price for domestic supplies by 1.2 percent in November,” it said.

Another factor that prompted the company to expect a recovery in steel production in the international market is the creation of new Chinese regulations aimed at achieving carbon neutrality goals.

“The Chinese government has demanded a 60 million tonne cut in steel production in the second half of 2021,” the company said. "At the same time, they raised export duties on chromite and high-purity cast iron to 40 and 20 percent, respectively."

Prices for hot rolled steel sheet and coils, cold rolled steel products and galvanized coils, and other steel products with fixed monthly prices will rise by NT $ 500 per tonne. Medium-grade galvanized steel coils will rise in price by 300 Taiwanese dollars per tonne.

Steel products, prices for which are adjusted quarterly, will remain unchanged until the next meeting of the CSC Pricing Committee, which will meet next month and also discuss steel prices, which will take effect later this year.