8/31/2010 1:38:00 PM
NEWS BRIEFS
China Steel Cuts Wire Rod Prices Amid Overcapacity
Taiwan’s China Steel Corp. cut its prices across-the-board for October and November shipments an average of 5.9%, as overcapacity continues to take a toll on the steel market.
Wire rod prices fell an average of NT1,088/metric ton (US$33.92).
Crude steel production jumped 28% in the first half of 2009, while demand grew at a more modest pace of 10.7%, according to the World Steel Association.
“It implies that steel industry has escaped from the aftermath of global financial crisis but implanted the cause of price volatility and reversing direction from oversupply in the second half of 2010,” China Steel stated.
While China’s domestic steel markets seems to have recovered from the global recession, prices have declined since mid-April, causing a surge in low-price steel exports to Taiwan from China, Japan and Korea. Steel prices bottomed out in July, but China Steel decided to cut prices an average of NT1,482/metric ton (US$46.20) “to fight against the dumping steel import and fortify local markets.”
Taiwan’s China Steel Corp. cut its prices across-the-board for October and November shipments an average of 5.9%, as overcapacity continues to take a toll on the steel market.
Wire rod prices fell an average of NT1,088/metric ton (US$33.92).
Crude steel production jumped 28% in the first half of 2009, while demand grew at a more modest pace of 10.7%, according to the World Steel Association.
“It implies that steel industry has escaped from the aftermath of global financial crisis but implanted the cause of price volatility and reversing direction from oversupply in the second half of 2010,” China Steel stated.
While China’s domestic steel markets seems to have recovered from the global recession, prices have declined since mid-April, causing a surge in low-price steel exports to Taiwan from China, Japan and Korea.
Steel prices bottomed out in July, but China Steel decided to cut prices an average of NT1,482/metric ton (US$46.20) “to fight against the dumping steel import and fortify local markets.” ©2010 GlobalFastenerNews.com
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