China Steel Corp, the largest steel manufacturer in Taiwan, recently announced a price hike for domestic steel deliveries set to take effect next month. The increase can be as high as $37 per metric ton, mirroring a positive trend in Asian steel prices. This rebound is largely attributed to China's initiatives to stimulate economic growth, which have revitalized demand for steel and led to rising commodity prices.
The price adjustments by CSC affect all categories of steel products. Specifically, processed hot-rolled steel coils will see an increase of $37 per metric ton, while hot-rolled plates and galvanized steel coils used in construction will rise by $28 per metric ton. Additionally, prices for galvanized steel coils utilized in home appliances, cold-rolled steel coils, electro-galvanized steel coils, and electrical steel coils will increase by $22 per metric ton. This comprehensive pricing strategy reflects CSC's commitment to adapting to the market conditions while supporting its downstream customers amid the global steel upcycle.
The recovery in the steel industry is underpinned by China's economic stimulus measures, which have effectively boosted the local manufacturing sector's confidence. CSC emphasized that the surges in commodity prices, particularly iron ore and coking coal, have led to increased steel manufacturing costs. For instance, the global price of iron ore jumped to approximately $110 per metric ton from $100 last month, while coking coal prices rose to over $200 per metric ton from $180 per metric ton.
In light of these developments, the World Steel Association recently projected that global steel demand would grow by 1.2% annually, reaching approximately 1.77 billion metric tons next year. This outlook is supported by factors such as easing inflation and increased government spending, which have collectively contributed to a more favorable demand environment for steel.
Other major players in the global steel market are also adjusting their prices in response to these trends. ArcelorMittal SA, the world’s largest steelmaker, has raised its prices for hot-rolled steel products to $44 per metric ton. Similarly, Chinese manufacturers like Baowu Steel Group and Angang Steel Group have increased steel plate prices by between $71 and $79 per metric ton for the upcoming month. Additionally, Vietnam-based Formosa Ha Tinh Steel Corp has increased its prices for hot-rolled steel products by $30 per metric ton.
