Taiwan's largest steelmaker, China Steel Corp (CSC), will keep its price lists for most steel products stable for local sales during October-December, the company's website said on Friday.
The CSC noted that iron ore prices have risen sharply since the beginning of 2019. The cumulative growth is up to 90% by the end of July and even more than 50% even with the price decline in August.
Given the market conditions and operating conditions of the downstream industries, CSC has taken on cost increases to ease pressure from downstream customers.
However, the ability to continue absorbing costs has reached its limits, the CSC said.
The fourth quarter is the traditional peak season for the metal trade, and major steel mills in the US, Japan, China and Korea have announced price increases one after another. Steel prices and transaction volumes are expected to increase in the fourth quarter.
As operating pressures persist in the downstream industries and to support the business opportunities of Taiwanese companies returning from China, CSC has decided to keep Q4 prices flat for most steel products and moderately raise prices for two types of rolled products. , - said the company.
In order to increase the momentum for downstream customer orders and avoid inventory losses, CSC has made moderate and stable adjustments, combined with numerous programs and additional measures, in Q4 prices.
For Q4 sales, CSC will increase prices for hot-dip galvanized coil and electrical steel coils by USD 5-10 per tonne, while maintaining price stability for other major steel products compared to Q3.
China Steel Corporation (CSC), based in Kaohsiung, Taiwan, was founded in December 1971. With an annual production (in raw steel terms) of about 10 million tonnes, CSC produces a wide range of products including plates, rods, wire rods, hot and cold rolled coils, electrogalvanized coils, electrical steel coils, hot dipped galvanized coils and stainless steels. The domestic market accounts for approximately 70% of CSC production, with exports accounting for the remaining 30%. CSC is the largest steel company in Taiwan with over 50% of the domestic market. The main export destinations are mainland China (including Hong Kong), Japan and Southeast Asia.