Taiwanese steel giant China Steel Corporation has hiked steel prices for domestic sales in the January 2021 & January-March 2021 quarter lifted by 6.1% in average, TWD 1,200-1,500 per tonne (USD 43-53). CSC said “Due to the successful development of COVID-19 vaccine, and nearing to the conclusion of US president election and the new economic relief package launched by various countries government, the global economy has been on track gradually. OECD forecasts the global economic growth rate will be 4.2% in 2021. The Directorate General of Budget, Accounting and Statistics also optimistically predicts that the economic growth rate of 2021 will reach 3.83% in Taiwan, which is benefiting from the release of infrastructure, the trend of returning Taiwanese companies and the rising export market. Moreover, the logistical disruptions caused by floods and the winter steel production restriction plans in China have made the steel supply facing a substantial contraction. However, the demand of downstream industries has recovered faster than expected, and the inventory level has fallen rapidly. The overall steel demand has shown a V-shaped recovery in the fourth quarter. The supply is far from matching the demand.”
CSC added “US HR price is reaching USD 1,000 per ton and European HR price is around USD 700 per ton. Compared with Southeast Asia and Taiwan market, the current import price is around CFR USD 650 per ton only, which means that there is still some room for the price to hike in Asian market. Boasteel raised domestic hot rolled and wire rod prices by CNY 400 (USD 61) for January shipment, and other steel products were raised by CNy 500-800 (USD 77-123). It is expected that FHS may also raise price significantly to reflect soaring steelmaking cost and market price.”
Monthly Prices - Average Adjusted Amounts
HR +1,200-1,400
CR +1,200
ES +1,400
GI +1,400
In TWD per tonne
Quarterly Prices - Average Adjusted Amounts
Plate +1,500
Bar and wire rod +1,500
HR +1,500
CR +1,500
EG +1,200
GI +1,500
Automotive usage +1,200
In TWD per tonne
CSC’s price hike announcement follows strong recovery in November 2020. The sales volume of carbon steel in November 2020 totaled 885,290 tonnes, with 59% of domestic sales.Accumulated sales volume of carbon steel as of November 2020 totaled 9,279,034 tonnes, with 66% ofdomestic sales
