China Steel Corp (中鋼), the country's largest steelmaker, said it will increase domestic steel prices by an average of 2.95 percent next month, as production costs rise due to rising raw material costs and unfavorable exchange rates.
The Kaohsiung-based steel company said adverse conditions are unlikely to ease given the continued rise in prices of coal, iron ore, nickel and other metals due to the war in Ukraine.
Shipping costs have also increased due to port congestion, the company said in a statement.
Steel supplies have been particularly tight in Asia, as steelmakers from Indonesia, Japan, South Korea and Turkey have shipped most of their products to Europe for higher returns.
As a result, China Steel stated that steel prices used in a wide range of categories, from home construction to computers and vehicles, have increased by NT$500 to NT$1,200 per ton.
The company has decided to gradually increase prices to help customers withstand tough economic conditions as they face declining domestic demand due to increased COVID-19. Also, a weak New Taiwan dollar and unresolved global port congestion also pose downside risks, he said.
China Steel said that with the latest regulations, the prices of mainstream hot rolled and cold rolled steel products will still be lower than for imported steel.
According to the statement, the move is intended to match its Asian counterparts, which have increased steel prices sharply, as Russia's invasion of Ukraine raises raw material costs, energy prices and shipping charges.
China Steel said that Japan's largest steelmaker Nippon Steel Corp increased its prices for delivery in the April-September period to ￥20,000 (US$158.09) per tonne.
Nippon Steel also said that it has increased the prices of steel sheets used in construction and electronics by Yen 10,000 per tonne for next month's delivery spot contracts.
He added that the latest price offers from China's Baowu Steel Group Croup Ltd (寶武鋼鐵), Angang Steel Co Ltd (鞍山鋼鐵) and Formosa Ha Tinh Steel Corp (河靜鋼) are also at high levels.
According to China Steel's new pricing, hot rolled plate and hot rolled coil prices will increase by NT$1,200 per ton. The price of cold rolled coils will increase by NT$1,000 per ton, while the price of galvanized steel coils used in construction and bakery will increase by NT$1,200 per ton.
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