Taiwan's largest steelmaker China Steel Corp yesterday cut domestic steel prices by as much as NT$2,000 per tonne for domestic deliveries next month and next quarter as the global steel industry's recovery remained below expectations and customers continued to deal with excess inventory.
The Kaohsiung-based steelmaker said world steelmakers received heavy orders in the first quarter, but the growth momentum could not be sustained as demand from China was not as strong as expected following its exit from strict COVID-19 rules earlier this year.
China is the world's largest steel consumer and producer
Demand contraction in the US and Europe was also a factor, the company said.
China Steel said it will cut steel prices for domestic delivery next month by NT$1,000 to NT$1,500 per tonne for the second consecutive month, with the highest price cuts for cold-rolled plates.
For the whole of next quarter, the price cuts will be even higher at NT$1,500 to NT$2,000 per tonne, it said.
Prices for wire rod, regular steel plate, hot-rolled steel plate and coils, as well as high-quality cold-rolled coils will decrease by NT$2,000 per tonne. The price of cold-rolled coils used in vehicles will decrease by NT$1,500 per tonne.
China Steel encouraged customers to build up stocks to prepare for a recovery before prices increase.
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