China Steel Corp, the largest steelmaker in China, yesterday raised domestic prices for steel products for delivery in the next quarter by an average of 6.1 percent, which is the sharpest growth in more than three years since the global economic recovery promotes demand growth.
Prices are expected to rise $ 42.19 /tonne this quarter, depending on the product, from this quarter, the company said in a statement, adding that it expects the uptrend to continue in the near future. severe supply restrictions worldwide.
The global steel industry has seen a V-shaped rebound in the fourth quarter as stronger-than-expected growth in the housing and auto industries pushes up prices for steel products and iron ore, the raw material used to make steel, a Kaohsiung-based steelmaker said.
“The supply was significantly lower than demand due to high demand for restocking and customer requests for earlier deliveries around the world,” the company said.
This recovery is in stark contrast to the first half of this year, when the COVID-19 pandemic halted business activity and shut down most steel mills.
The latest price hike is in response to rising production costs, China Steel said, adding that iron ore prices soared to a seven-year high of $ 158 per tonne, driving up production costs significantly. Coal prices are also rising, he added.
The price adjustments are in line with the pricing strategy adopted by China’s Baoshan Iron & Steel Co, which has raised prices for hot rolled steel for next month’s delivery by $ 61 per tonne, China Steel said in a statement.
Baoshan increased the prices of other products at a faster pace – by $ 77 to $ 123 per tonne, the company added.
Formosa Ha Tinh Steel Corp in Vietnam is also expected to raise its prices significantly to reflect higher production costs and an upward trend in the market, China Steel said.
Hot-rolled steel prices have skyrocketed around the world, the report said.
China Steel has raised prices for hot rolled steel sheet and hot rolled steel products for next quarter delivery by NT $ 1,500 per tonne.
The company returned to profit without tax since August.
Between January and November, revenues fell 16% to T $ 284.18 billion from T $ 337.14 billion in the same period last year.