China Steel Corporation will increase domestic steel prices by an average of 1.5pc for the September delivery owing to higher international iron ore prices. The recovery of the automobile market and announcement of new infrastructure projects by China is driving the market.
The company is going to increase prices of hot-rolled steel plate, hot-rolled material, and hot-rolled general material, cold-rolled general material and hot dip galvanized steel coil building materials by TWD300/mt in September. The price for electromagnetic steel coil will increase by TWD500/mt.
The price hike is also attributed to rise in prices in international steel market — Japanese export market has risen by $20/mt and Korean mills have increased by $25/mt for the domestic market.
Infra project announced by China
China has introduced a “new infrastructure” policy with a construction plan worth CNY1.2 trillion ($171.62 billion) which would boost demand of steel.
Recently, heavy rains were experienced in southern China and Kyushu in Japan, which is expected to increase steel demand after the floods subside.
As per the latest June manufacturing purchasing manager index (PMI) in Europe, America, China, Japan, South Korea, Southeast Asia and Taiwan, all countries showed positive sign and upward trend of their economy.
($1= TWD 29.49, CNY 6.9)