Posted on 16 Nov 2021
China Steel Corp (CSC, 中鋼), the nation’s largest steelmaker, yesterday announced modestly lower prices for certain products for domestic delivery next month, its first price cut since July last year.
The company’s move reflected its concerns for domestic downstream companies that are facing supply chain bottlenecks and rising shipping costs, as well as pressures for inventory and fund adjustments before the end of the year, it said in a statement.
Apart from electrical and electro-galvanized steel coils, prices for other products would decrease by an average of 1.65 percent on a monthly basis, the company said.
Hot-rolled steel, hot rolled plate, cold-rolled steel and hot-dipped galvanized steel are to decrease by NT$600 per tonne, it said.
The company said that it remains positive about the industry’s outlook for next year, adding that the World Steel Association in its latest assessment predicted global steel demand would grow 2.2 percent next year from this year, or an increase of 41 million tonnes to 1.896 billion tonnes.
China’s restriction on steel production as Beijing aims to implement stricter environmental and electricity policies would also further tighten the supply of steel, the company said.
The steel market in Taiwan is expected to continue benefiting from manufacturers reshoring their businesses and the implementation of government-backed infrastructure projects, CSC said.
The US$1.2 trillion infrastructure bill that was on Nov. 5 passed by the US House of Representatives for roads, bridges and port improvements is forecast to boost steel demand by 3 to 4 percent, the American Iron and Steel Institute said.
CSC said that would also benefit Taiwan’s steel industry.
The company said the industry is facing growing pressure regarding environmental, social and governance issues, as well as sustainable development challenges, to address emission reductions.
CSC said that it is tracking the carbon footprint of its products, and is introducing lower-carbon equipment and techniques to prepare for carbon surcharges on products starting in August next year.
Source:Taipei Times
