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Capacity bottlenecks for steel: The steelmaker CSC said there are clear signs of a recovery in global production and global steel demand is forecast to rise 4.1 percent. This is what the Taipei Times writes in a recent article.

China Steel Corp to raise prices for steel products
China Steel Corp to raise prices for steel products

China Steel Corp increases prices by 8.3 per cent

China Steel Corp (CSC, 中鋼), the country’s largest steelmaker, said yesterday it will raise prices for local shipments by 8.3 percent next quarter, citing strong demand and rising raw material prices. Steel prices for next month are expected to rise 1.7 percent, CSC said.

Prices adjusted monthly at HRC by CSC

The Kaohsiung-based China Steel Corp updates prices monthly to reflect market conditions for products such as hot-rolled steel, while updates for other products, such as automotive steel, are made quarterly.

“Our principle is to set prices that are steady, gentle, opportune and balanced,” the company said in a press release. “We have taken into account the competitiveness of the steel industry, the cost of raw materials and the price pressure on steel companies.”

Strong global demand expected

China Steel Corp said it expects strong demand globally, domestically and in China.

“Signs of a global recovery in manufacturing are clear,” it said. “Demand for automobiles, basic infrastructure and appliances is rising rapidly.”

“The World Steel Association forecasts a 4.1 percent increase in global steel demand,” CSC said.

Steel supply still limited with major lead delays

On the demand side, companies have been slow to restore capacity to pre-COVID-19 pandemic levels.

“On the supply side, some blast furnaces in Asia and Europe have been slow to return to production due to the impact of COVID-19 and extreme weather,” CSC said. “Along with disruptions in logistics, we have seen major delays.”

Downstream industry has reached lowest steel stocks

Downstream Taiwanese steel inventory “has reached its lowest level in years,” it said.

CSC cited high costs of raw materials such as iron ore, steel scrap and smelting materials for the increase in average steel prices.

Source: taipeitimes.com


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