Taiwan’s largest integrated steelmaker Kaohsiung based China Steel Corp said that it would raise domestic steel prices by 9.5% for delivery in February 2021, eighth straight month of increases. Prices are to increase by TWD 2,200 per tonne (USD 78) for hot rolled steel, hot rolled plates and electro galvanized sheets, TWD 2,500 per tonne (USD 89) for cold rolled steel and TWD 3,000 per tonne (USD 107) for electrical sheets. CSC attributed the price hikes to increased raw material costs for steelmakers and robust demand for steel. CSC said domestic steel prices still lag behind international prices, indicating that there remains room for increases. CSC said “Although our prices for domestic delivery are far lower than international levels, we have to take into consideration the competitiveness of downstream companies as the New Taiwan dollar rises. We are keeping to our principles of smooth and stable pricing, while reflecting material costs.”
Earlier on December 11 2020, China Steel Corporation had hiked steel prices for domestic sales in the January 2021 & January-March 2021 quarter by 6.1% in average, TWD 1,200-1,500 per tonne (USD 43-53).
Meanwhile, the company also called for discipline among Taiwanese steel companies amid an overheated local market. CSC said “There have been reports of steel firms hoarding stock and pushing prices up. We call upon the industry to maintain an orderly market.”
CSC is Taiwan’s largest steel producer and the only one that is vertically integrated. It is also the only company that is legally allowed to operate steel blast furnaces; all six steel blast furnaces on the island, four in Kaohsiung and two in Taichung, belong to CSC and its subsidiaries.