2/14/2010
Taiwan Wire Rod Price Remains Unchanged; CSC Predicts No Reduction in 2010

Taiwan’s China Steel Corporation announced winter prices will remain steady.

Citing an “unstable but slowly growing global market,” CSC will use bimonthly pricing this year.

The price of wire rod and steel was stable for January and February 2010. There were slight price reductions for steel plates, hot-dip galvanized steel rolls, electromagnetic steel rolls, and cold rolled products.

CSC noted its current steel price is lower than the global market and the price reduction of steel plates appears substantial due to the imported products from Japan and South Korea and the reconstruction demand after Typhoon Morakot. The price of hot-dip galvanized products is slightly reduced due to the imported products from China and less demand in domestic construction industry. The price of electromagnetic steel rolls is reduced due to the competition from imported products from Japan and the consideration to help the industry process and boost its foreign sales.

China Baosteel, Ansteel, and Wuhan Iron & Steel increased prices for domestic and foreign sales in December 2009. Japan high furnace steel plants adjusted prices up approximately US$30 for hot rolled and cold rolled products in Q1 2010.

The contract price of iron ore in 2010 may increase over 30% and global steel consumption is estimated to grow 9.2%.

Stable or slight price reductions help the downstream industry compete with low-priced imported steel products from China, Japan and South Korea, Taiwan-based Fastener World magazine observed.
Global steel prices plunged in Q3 of 2009, but then began recovering pushing CSC domestic prices up. Until December, CSC reduced its price for domestic sales, resulting from the substantial reduction of steel price in China. ©2010 GlobalFastenerNews.com and Fastener World