China Steel Corp, the largest steelmaker in the country, has announced a price increase of NT$300 per tonne (US$9.71) for its main steel products in domestic deliveries next month, driven by the rise in domestic demand.
İn a statement, the steelmaker based in Kaohsiung mentioned its readiness to rebound from the decline in domestic steel consumption as the inventory correction nears its completion.
The company emphasized that the market outlook is optimistic, supported by the government's NT$680 billion public infrastructure project, which has significantly contributed to the increased demand for steel.
China Steel stated that global coke and iron ore prices have reached their lowest point and are now poised for a recovery.
Further mentioned that the price of iron ore has hit its lowest point, ranging from around US$105 to US$115 per tonne, while the price of coke has shown signs of recovery, ranging between US$225 and US$235 per tonne.
After implementing price reductions for two consecutive months, China Steel has now raised the prices of hot rolled steel plate, hot rolled steel coil, and cold rolled steel plate by NT$300 per tonne.
Additionally, China Steel Corp raised the price of galvanized steel coils specifically used in construction by NT$300 per tonne. However, there were no adjustments made to the prices of galvanized steel coils used in household appliances, computers, and silicon steel coils.
China Steel's price increases align with the upward adjustments made by its Chinese counterparts. Baowu Steel Group Ltd, the world's largest steelmaker, and Angang Steel Co. have both raised their prices for hot rolled, cold rolled, and galvanized steel by 100 yuan (US$14) per tonne. China Steel stated in a press release that this development indicates a likelihood of further global steel price increases in the second half of this year.
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