Taiwanese steelmaker CSC noted that high international steel prices have become a new normal in the post-pandemic world. Tight supply, higher inputs costs amid increase price of coal, iron ore and transportation along with increase environmental concerns are pushing steel prices up, globally, stated CSC in its monthly steel price.
Robust recovery and growth in major world economies in Q1 have sharply increased steel demand and are supporting record-high international steel prices, thereby leading to an imbalance between domestic and international prices. Citing the above factors, the steelmaker hiked domestic steel prices by $36-89/mt for June shipments amid a widening gap between domestic and international steel prices. On average, the company raised prices by 8 pc from the prior month. CSC’s HRC price for June domestic sales is up by TWD2,500/mt ($89.37/mt).
|CSC’s price hike for domestic June sales|
|Product||Price hike (TWD/mt)|
|Electromagnetic steel||1,000 to 1,500|
According to CSC’s market analysis, post-May Day holidays, Chinese demand has upped steel and steelmaking material prices. The cost of iron ore has hit a record high of S$229/mt. while in the Shanghai market steel prices are at CNY6,700/mt (approximately $1,037/mt). In Southeast Asia prices have stabilized at $1,000/mt, while in the EU prices are at $1,250/mt and the US market is approaching $1,700/mt.
In April, CSC had hiked flat and long steel prices by TWD2,000-3,000/mt driven by strong global cues and an anticipated rise in end-user demand.