Steel prices stable despite soaring coal and ore costs: CSC
China Steel Corp, Taiwan’s largest steelmaker, said yesterday it would keep domestic prices unchanged next month, despite soaring prices for raw materials, including iron ore and coking coal.
Iron ore and coking coal prices exceed US $ 200 per tonne, as coal has doubled its price since January, the company said in a statement.
However, given a local outbreak of COVID-19 and the competitiveness of local downstream businesses, the company said it would focus on stabilizing steel prices and encouraging further development. constant market.
“We have kept prices stable for August so that companies don’t have to worry about their orders,” CSC said. “We hope that domestic steel-dependent companies can work together… and seize this opportunity to plan their future production accordingly.”
International demand for steel is expected to remain strong, with the IMF forecasting global economic growth to exceed 6% this year for the first time since the 1970s, CSC said.
“Global steel supply is limited and we expect this trend to continue in the second half of this year,” the company said.
At an online conference on the Taiwan steel market, the Taiwan Machinery Industry Association urged the CSC to ensure order in the domestic market by regulating downstream dealers.
“About 90% of our members buy steel from dealers, but the prices can be extremely chaotic. This proves that dealers hoard and drive up prices, ”TAMI General Secretary Hsu Wen-tung said yesterday after a meeting with CSC Chairman Wong Chao-tung on Tuesday.
The association called for more transparency in the steel market, calling for the creation of a platform to connect sellers and buyers, and a quota of direct purchases with CSC.
The CSC said it was open to discussing a twinning platform, but direct quotas could be difficult to implement, as steel products often require third-party processing.
However, CSC is monitoring stock levels of resellers, he said, adding that it would give TAMI access to its data to make the market more transparent.
Source: Taipei Times