China Steel Corp, the country’s biggest steelmaker, said yesterday it would raise steel prices by an average of 2.44% for shipments next month as local customers ramp up stockpiling in a context of improving demand during the high season.

The company is taking a cue from its global peers, which have raised steel prices in response to improving demand from the construction and automotive industries, as more countries gradually open their savings and plan to roll out new infrastructure projects in the second half of this year.

Chinese companies Baowu Steel Group Ltd and Angang Steel Co have raised domestic steel prices by 200 to 400 yuan ($31.55 to $63.11) a ton for delivery next month, China Steel said in a statement. communicated.

This is the first price increase in eight months by Chinese steel mills, the statement said.

Vietnam’s Formosa Ha Tinh Steel Corp also raised hot-rolled steel and steel rod prices by US$90 and US$40 per ton respectively in its latest price quotations, the statement added.

“Global steel industry fundamentals are improving with the onset of peak season, leading to an acceleration in downstream accumulation,” China Steel said.

“Global steel prices are heading higher again this year, fueled by higher manufacturing costs and better demand,” he said.

In Europe, demand for steel has also increased significantly, benefiting from a recovery in the regional auto industry, he said.

ArcelorMittal SA has entered into long-term supply agreements with European automakers, with prices increasing by 30 to 50 euros per ton for its hot and cold rolled steel sheets, according to the press release.

“A rebound in March is a turning point, indicating that the steel industry is heading for an upward trend in the busy second quarter,” the Kaohsiung-based company said.

Global steel supply is moving in the opposite direction as some Japanese and South Korean mills cut production following the shutdown of several steel furnaces, China Steel said.

Chinese steelmakers cut production to comply with Beijing’s restrictions on carbon emissions during the Beijing Winter Olympics, he said.

Rising manufacturing costs are increasing pressure on steelmakers, given record prices for iron ore, the main raw material for steelmaking, at around US$150 per tonne lately and prices for metallurgical coal reaching about 440 U.S. dollars a ton, China Steel said.

China Steel raises steel prices by NT$500-800 a ton, after three consecutive months of cuts.

Prices for hot-rolled steel sheets and coils, as well as cold-rolled steel coils, are expected to rise by NT$800 per ton next month, while the price of hot-dip galvanized coils used in construction must also climb by NT$800 per ton. ton, and the price of hot-dip galvanized coils used in household appliances and computers is to rise by NT$500 per ton, the company said.

Prices for electro-galvanized coils and electrical steel sheets are expected to increase by NT$500 per ton next month, he added.
Source: Taipei Times