MARKET VOLATILITY:
The steel market has seen mixed fortunes despite global economic momentum, as raw material prices become increasingly volatile.

• By Crystal Hsu / Journalist

China Steel Corp (CSC, 中鋼), the country’s largest steelmaker, said yesterday it would keep prices intact for some products and make slight increases for others next month as end-market demand needs more time to recover and customers favor low inventory towards the end of the year.

Prices of hot-rolled steel plate, hot-rolled steel coil, cold-rolled steel coil and steel coil would increase by NT$300 per tonne, the Kaohsiung-based company said.

However, prices would remain unchanged for electro-galvanized steel coils, electrical steel coils and galvanized steel coils used in household appliances and computers, it said.

Photo courtesy of China Steel Corp.

CSC said it made the decision after taking into consideration the presidential transition in the United States and the introduction of stimulus measures in China.

CSC added that it will adopt flexible measures to help upstream and downstream enterprises improve their businesses and capabilities in line with market trends and the principle of price stability.

The global steel market has seen mixed fortunes, with the global economy gaining momentum, but exchange rates and commodity prices have become increasingly volatile, the report said.

The US presidential election ended peacefully, removing uncertainty over its outcome, the company said.

At the same time, China announced a 10 trillion yuan ($1.3 billion) package to ease debt pressure on local governments and enable fiscal stimulus next year, the report said. press release.

Overall, global steel supplies remain tight, but it will take some time for manufacturing and end-market demand to come out of the wood, he says.

The return of US President-elect Donald Trump to the White House could lead to new trade disputes between the United States and China that could weigh on Chinese exports, the steelmaker said.

Taiwan has imposed anti-dumping duties on Chinese galvanized steel products and the hot-rolled steel case is ongoing, he said.

Local companies should avoid using low-cost Chinese steel raw materials in their finished or semi-finished products to reduce the risk of being involved in a trade war between the United States and China, CSC said .

Such voluntary practices would give the Taiwanese government a helping hand in its efforts to obtain an exemption from U.S. steel tariffs, the company said.

According to the World Steel Association, global steel demand would rise 1.2 percent to 1.77 billion tonnes next year, an increase of 20.6 million tonnes from this year. year, as the recovery accelerates.

China’s manufacturing purchasing managers’ index returned to growth last month after a six-month hiatus, while US private consumption rose 3.7% in the last quarter, an acceleration from a previous year. increase of 2.8% three months earlier, favorable to Taiwan’s exports, CSC indicated.

Taiwan could record stable GDP growth of 3.15 percent next year, on top of a 4 percent increase this year, the CSC added.