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CSC to continue Steel price increasing
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China Steel Corporation is expected to continue to raise its wholesale product prices in the domestic market on the back of downstream buyers’ efforts to restock as the global economy improves.
Mr Chang Chih-cheng analyst of Asia Securities Investment Consultant said that “Baoshan Iron and Steel Company, the largest listed steel company in China, has hiked its domestic product prices for two months in a row, indicating that global demand for steel products is on the rise. I expect China Steel will follow suit to keep setting higher wholesale prices in the coming months.”
Chang’s optimism over China Steel’s pricing power was sparked by a decision made by the Taiwanese company on Thursday to raise its wholesale domestic prices by TWD 236 per metric tonne, or 1.2% on average for March contracts compared with January to February orders.
China Steel’s move came after Baosteel announced an increase in its domestic product prices. The Chinese supplier announced a 2% price increase for its hot rolled coil and a 2.6% price increase for its cold-rolled coil for February delivery.
Baosteel’s pricing decisions have been closely watched by its counterparts in the region, as China is one of the largest steel consumers in the world. It was the first time China Steel had hiked its domestic prices since late last year, when prices for October to November delivery were increased by 1.86%.
China Steel said that steel inventories in the China market have fallen to a relatively low level after months of adjustments, which has prompted buyers to restock, paving the way for a price recovery. In addition to China, Japanese steelmakers have raised prices for outbound sales.
Source – Taipeitimes.com
Mr Chang Chih-cheng analyst of Asia Securities Investment Consultant said that “Baoshan Iron and Steel Company, the largest listed steel company in China, has hiked its domestic product prices for two months in a row, indicating that global demand for steel products is on the rise. I expect China Steel will follow suit to keep setting higher wholesale prices in the coming months.”
Chang’s optimism over China Steel’s pricing power was sparked by a decision made by the Taiwanese company on Thursday to raise its wholesale domestic prices by TWD 236 per metric tonne, or 1.2% on average for March contracts compared with January to February orders.
China Steel’s move came after Baosteel announced an increase in its domestic product prices. The Chinese supplier announced a 2% price increase for its hot rolled coil and a 2.6% price increase for its cold-rolled coil for February delivery.
Baosteel’s pricing decisions have been closely watched by its counterparts in the region, as China is one of the largest steel consumers in the world. It was the first time China Steel had hiked its domestic prices since late last year, when prices for October to November delivery were increased by 1.86%.
China Steel said that steel inventories in the China market have fallen to a relatively low level after months of adjustments, which has prompted buyers to restock, paving the way for a price recovery. In addition to China, Japanese steelmakers have raised prices for outbound sales.
Source – Taipeitimes.com