Taiwan’s leading steelmaker China Steel Corporation (CSC) hiked in its August domestic steel shipment prices amid high raw material prices and recovery in demand. CSC raised finished steel prices by NT$600-1200/mt ($20-41/mt) from the July shipment prices on Thursday. This price hike comes in anticipation of a recovery in the global economy amid higher cost of raw materials such as iron ore and scrap. The overall global finished flat steel market is optimistic about demand.
Most countries in Europe, America and Asian have ramped up their economic activities as the number of new COVID-19 cases have decreased. The manufacturing sector has started gaining momentum and the global economy is expected to recover in the second half of the year, according to economists.
Iron ore prices hit a 10-month high of $100/mt cfr China driven by a reduction of production at Vale’s Brazilian mines due to the spread of COVID-19 among mine workers. Post a pick up in production, China’s finished steel market has remained very strong and raw material inventories at major steel companies dropped by 40pc from their peak. Higher consumption in China lifted finished steel prices, internationally.
Imported and domestic ferrous scrap prices have increased by $30/mt in a month. US-origin HMS 1&2 (80:20) recently traded at $255/mt cfr Taiwan, up $25-30/mt from the $225-230/mt cfr Taiwan levels a month earlier.
For July shipments, major Chinese steel mills such as Baowu and Anshan Iron & Steel have increased their prices by about $40/mt. Major suppliers in Japan, South Korea, India, and Russia have also pushed up prices by $30/mt or more from June.
In Taiwan, major downstream industries including automobiles and real estate have gradually regained momentum, which could boost steel demand in the near future.
| CSC’s domestic steel prices for August shipments (Taiwan) | |
| Finished steel products | MoM change in prices (NTD) |
| Hot rolled steel plate | 1,200 |
| Hot rolled rolled material | 600 |
| Hot rolled general material | 900 |
| Cold rolled general materials | 900 |
| Electromagnetic steel coil | 1,000 |
| Hot dip galvanized steel coil building materials, baking paint | 900 |
($1=NTD29.6)