China Steel Corp (中鋼), the nation’s largest steelmaker, is to accelerate cuts for domestic steel prices by 2.23 percent for next month’s deliveries, given a sharp demand correction as panic buying caused by Russia’s invasion of Ukraine abated last month, it said yesterday.
China Steel is also keeping steel prices for next quarter unchanged, compared with the current quarter, given unfavorable short-term prospects.
Uncertainty about the trajectory of the COVID-19 pandemic and mounting global inflationary pressures have added to a slowdown in steel demand, the Kaohsiung-based company said in a statement.
Photo courtesy of China Steel Corp
Substantial measures taken this month by the US and the EU to control inflation could slow the recovery of the global economy, it added.
“The outbreak of the war in Ukraine caused a supply shortage, triggering panic inventory building demand in March and April, leading to surges in steel prices,” it said. “With the effect of blunting, many customers in the US and Europe froze new orders in May.”
The downturn has spread to Asia, as shown in a broad pullback in steel prices there, the company said.
Imports of lower-priced steel products from China, South Korea, India and Russia also negatively affected the local market, it said.
China Steel has asked the Taiwan Steel and Iron Industries Association to activate a monitoring mechanism for anti-dumping complaints if abnormal price quotes are found compromising the local market, the company said.
“As customers have seen a sharp decline in new orders and thin turnover, the company is lowering prices by between NT$600 and NT$1500 per tonne for deliveries next month,” the statement said.
“The company hopes the new price quotes will help accelerate the market to its lowest level and help customers strengthen their competitiveness over export rivals,” it said.
China Steel said it is seeing early signs of a rebound as China’s Baowu Steel Group Croup Ltd (寶武鋼鐵) and Angang Steel Co (鞍山鋼鐵) have ceased cutting prices and kept quotes flat for next month’s deliveries.
China Steel decided to cut prices of all hot-rolled steel plates and coils by NT$1,500 per tonne, it said, adding that cold-rolled coils would go down NT$1,500 per tonne as well.
Based on China Steel’s price adjustment plan, the cost of galvanized steel coils used in anti-fingerprint steel sheets and construction would fall NT$1,200 and NT$1,500 per tonne respectively.
The price of hot-dipped zinc-galvanized steel coils used in home appliances, computers and other devices would fall NT$1,200 per tonne, the company said.
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