CENS reported that China Steel Corporation has recently predicted the slumping steel market will recover at the end of the second quarter of 2012, based on optimistic outlook for the US steel market in 2012 as stated in a report released by the American Institute for International Steel.

AIIS predicts steel prices could continue to rise because of the economic growth in the US where GDP grew 1.3% and 2% in the second and third quarters of this year, respectively.

Mr YH Lee VP of Chung Hung Steel Corporation said that the US steel market is the world’s only one enjoying surging steel prices with the nation consuming ample API certified steel pipes used in oil exploration; with an executive of Chung Hung noting the growth of the US real estate and automobile markets to bolster its steel market in 2012.

Institutional investors said the promising US steel market will benefit Taiwan's steelmakers, as Chung Hung Steel Corporation, Yieh Phui Enterprise Co, Sheng Yu Steel Co and Prosperity Tieh Enterprise Co, since the US is the economic locomotive for the world.

Chung Hung, Yieh Phui and Sheng Yu export relatively high proportions of output to the US, with Chung Hung mainly exporting steel pipes and Yieh Phui, Sheng Yu and Prosperity Tieh mainly exporting electro galvanized sheets to the US.

(Sourced from www.cens.com)