6/30/2009
HEADLINES
China Steel Hikes Prices for July and August

After months of price cuts, Taiwan steel supplier China Steel increased steel prices for July and August by an average of 7%, or NT$1,268 (US$38.67).

Wire rod hikes were lower, with an average increase of NT$500 (US$15.25).

“Although steel mills’ production cut and inventory restocking help boost global steel prices, CSC only moderately reflects in the price adjustment in order to strengthen customers’ global competitiveness and help confront the current economic crisis,” China Steel stated.

China Steel’s increase reflects higher prices in mainland China, Fastener & Fixing editor Phil Matten explained. He noted Baosteel just announced a price hike for the upcoming quarter.

Facing its first loss in 29 years, China Steel cut prices by 22.5% during the opening quarter of 2009. Taiwan fastener makers had wanted steeper reductions.

In February the European Union adopted antidumping duties of 85% on a range of fastener exports from China, prompting fastener exports from China to plunge 46% to 70,000 tons in February, while the value declined 48% to US$110 million. China exports of steel and copper fasteners continued to drop for a third straight month in March, plunging 36% to 120,000 tons, with the value declining 32% to US$187.9 million.

China responded with an antidumping investigation into EU carbon steel fasteners.

The Chinese government has also threatened to file a complaint with the World Trade Organization.

In addition to duties on its fasteners, China faces threaded rod export tariffs by the U.S. and the EU. ©2009 GlobalFastenerNews.com

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