9/22/2010 1:01:00 AM
NEWS BRIEFS
China’s Steel Cuts Push Taiwan Wire Rod Higher

Analysts predict Taiwan’s steel prices will likely rebound in the remaining months of 2010, influenced by steel production cuts in China, Focus Taiwan reports.

Steel production by China may drop 10% in September following China’s decision to restrict power supply to mills in an effort to meet energy efficiency targets.

China’s energy consumption per GDP unit is required to fall 20% from 2006 to 2010.

“With reductions in China’s steel production expected to step up between October and December, Chinese steel prices will continue to rise until the end of this year, and that will boost steel prices in Asian markets, including Taiwan’s,” Focus Taiwan reports.

“The rise of Chinese steel prices will also reduce the possibility of the dumping of Chinese steel products in Taiwan, and that will help stabilize, or even boost Taiwan’s steel prices, ” noted a downstream steel firm executive.

Prices of hot-rolled and cold-rolled steel from Taiwan’s Chung Hung Steel are expected to show the first sign of local steel price movements.

“As Chung Hung Steel’s hot-rolled steel prices were reported at US$625 in September — about US$12.6 lower than the market prices, the company may raise its steel prices by US$9.5 to US$15.8 in October,” a company official said.

Asian steel prices have been falling since the second quarter of this year.

Steel inventories generated by an over-supply in Chinese steel markets has led to the dumping of Chinese steel products in overseas markets.

November’s wholesale prices reported by Taiwan’s largest steel producer China Steel Corp. in late August — were 9.66% lower than three months ago.  ©2010 GlobalFastenerNews.com