7/14/2011 3:18:00 PM
NEWS BRIEFS
China Steel Cuts September Prices
Softening demand prompted Taiwan’s China Steel Corp to cut September domestic steel contract prices by an average of NT$422 (US$14.60), or 1.69%, the Taipei Times reports.
“The move is expected to stimulate the domestic market and help downstream customers maintain their global competitiveness, even though CSC’s raw material costs remain high in the third quarter,” China Steel explained in an emailed statement.
The move represents the second consecutive price cut for the Taiwan’s largest steelmaker. China Steel had previously lowered prices by an average of 4.19 percent for July and August.
China Steel trimmed prices for cold-rolled sheets and coils, electro-galvanized sheets and electrical sheets, and steel plates.
However, prices for steel bars and rods will remain unchanged, the company noted.
“Adding more downward pressure to steel prices were the expanded exports from steel mills in Japan, South Korea and China caused by sluggish sales in their home markets,” the Times reports.
However, after steel prices dropped below production costs, steel mills in the US and Europe began to reduce production and raise prices for steel bars, CSC said.
“As Japanese mills have also raised prices for April-September contracts for automobile and consumer electronics makers by US$160 to US$180 per tonne, and demand in China is expected to increase by 30 million tonnes to support the automaking and construction industries by the end of November, CSC expects the international steel market will see a strong fourth quarter driven by restocking demand.” ©2011 GlobalFastenerNews.com
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