CSC explained that given the higher prices of steelmaking raw materials, including iron ore, coal and alloys such as nickel, molybdenum and vanadium, the integrated steel plant had to increase steel list prices even higher to partially offset the increase in production costs.
On the other hand, CSC noted that steel demand in local and overseas markets is the peak season for steel consumption in the 2nd Quarter, as well as in the coming months.
In addition, Taiwan's local government has decided to increase investment in public construction to support economic growth.
For China, the company said, the central government will continue to take measures to stimulate the real estate market and increase car sales, boosting domestic demand for goods.
CSC believes that global steel supply may remain tight in the near term as production among steelmakers in Europe and the Americas has not fully recovered after last year's decrease, and demand from Turkey remains firm due to restructuring demand after the early February earthquake.
Steel prices experienced a significant increase globally in the first quarter of this year. For example, according to CSC's statement, hot rolled coil prices in the United States have exceeded $1,250/ton, and HRC prices in Europe have also increased by $ 180/ton since the end of last December.
Baoshan Iron & Steel Co, the listed arm of China Baowu Steel Group, the world's largest steelmaker, decided in April to add an additional 200 Yuan/ton ($29/ton) to the list prices of carbon steel hot-rolled coil for local sales.
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