China Steel Corporation plans to increase domestic steel prices by around 3.36pc for the fourth quarter (Oct-Dec) deliveries amid an uptrend in the international iron ore and steel prices. The rise in iron ore prices was the highest in the last two years.
After the revision, plate prices will increase by TWD800/mt, bar & wire rod price by TWD750/mt, cold-rolled coils by TWD700/mt, and the price for electromagnetic steel coil will increase by TWD1,000/mt.
China’s economy has started its recovery with a ripple effect on steel demand. Meanwhile, Brazil one of the main producers of iron ore is still hit due to the COVID-19 pandemic. The resulting supply crunch has sent the international iron ore prices surging, even reaching $127/mt, the highest in six years.
The price increase was supported stimulus packages and recovering manufacturing sector in the US, Europe, and East Asia from July.
Economic activities in Taiwan are also gaining momentum aided by private and government spending. The Directorate-General of Budget, Accounting, and Statistics estimated the nation’s GDP to grow 1.56pc in the year and 2.56pc in the fourth quarter.
Among other steelmakers in the country, Feng Hsin Steel has raised domestic steel prices by $45/mt for October shipments, J-mills increased prices by $50/mt. Baowu has increased prices for steel by $30-40/mt for September shipments. These mills believe the price raise will be supported by strong demand from infra projects and expected reconstruction work after floods.
($1= TWD 29.39, CNY 6.9)