Taiwanese steelmaker China Steel Corp has kept its steel prices unchanged in the domestic market. Prices have been kept flat despite a surge in the prices of raw materials, including iron ore and coking coal, according to reports.
The steelmaker said it would focus on stabilizing the price of steel and encourage a steady development of the market amid a local COVID-19 outbreak and increasing competition.
Both, coking coal and iron ore prices have crossed $200/mt, with the prices for coal doubling since January, the company stated.
The Taiwan Association of Machinery Industry (TAMI) also requested the CSC to ensure order in the domestic market by regulating downstream sellers. The association has called for more transparency in the market and suggested that market players create a platform to connect sellers and buyers and a quota for direct purchases with the CSC.
The CSC added that while it was open to creating such a platform, a quota for direct purchases, it would be difficult to implement as third parties are often necessary to process steel productions.
The steelmaker also said that it is keeping track of resellers’ stock levels and would give the association access to its data, in an initiative to make the market more transparent.
The IMF forecast that global economic growth will exceed 6pc this year for the first time since the 1970s has added to the global demand for steel, the company added.