Taiwan’s China Steel Corp (CSC) raised monthly flat steel sales prices for the domestic market by TWD300/mt ($10.5/mt) for December shipments. The steelmaker hiked priced for the fifth successive month since July as demand continued to improve both in the domestic as well as international market. High input costs have led to an increase in steel prices.
Global economies have gradually improved in the third quarter. The manufacturing PMI index of major countries and the third-quarter operational performance of most companies have returned to pre-COVID-19 levels. The steel demand from automobiles, motorcycles, home appliances, sports equipment and other industries has strengthened, and the uncertainty around the US election has also been eliminated, driving the international steel market to rise strongly, according to the company.
The company raised prices of most finished steel products including hot-rolled coil and sheets, cold-rolled and galvanized coils and sheets, while the prices of electrical steel remain unchanged from the prior month.
In Taiwan, Q4 traditionally has good demand. Also, in recent months, the prices of hot-rolled steel coils in the US, Europe, and India have increased sharply. Appreciation of the Taiwanese dollar against the US dollar also supported domestic opportunities.
CSC’s carbon steel sales rose to 889,930mt in October, up 9.5pc from 812,564mt in the previous month. Sales rose at a faster pace than September indicating strengthening domestic demand. Share of exports shot up to 41pc of the total sales in October, according to a company release on Nov 16.
Pre-tax profit grew to TWD1.35bn ($47.3mn) in October. Profits rose almost three-folds or 205pc from the TWD443.8mn in September. Revenue hit the second-highest monthly level this year. Operating profit was TWD1.4bn, up 281pc from a month ago. Consolidated revenue increased 4pc to TWD27.09bn in September.