CSC slashes steel prices as regional demand weakens

SEATTLE (Scrap Monster): China Steel Corp, Taiwan’s largest integrated steelmaker, yesterday announced that it would cut steel prices by NT$800 per tonne across the board for domestic delivery next month, a larger reduction than the NT$300 reduction for this month’s deliveries.

The price cuts cover products ranging from hot-rolled coils, hot-rolled plates and regular cold-rolled plates to electro-galvanized steel coils, galvanized steel coils and electrical steel coils, the Kaohsiung-based company said in a statement.

CSC is matching price cuts by its Asian peers, including Vietnam’s Hoa Phat Group and Formosa Ha Tinh Steel Corp, in response to sluggish steel demand in the region and growing wait-and-see sentiment in the market, the company said, adding that it aims to help customers win more business by offering lower-priced steel.

“As the Asian markets are entering a traditionally slow season, customer demand is softening,” the company said.

CSC said customer demand is weakening further as unreasonably low-priced steel products flood the Taiwanese market after being diverted from the EU and Japanese markets.

The EU and Japan have implemented protective measures such as anti-dumping duties or tariff hikes to safeguard their steel industries, it said.

CSC is closely monitoring the market situation and accelerating its efforts to pursue trade remedies to safeguard the nation’s steel industry, it added.

Global steel markets showed mixed trends, CSC said. In the US, hot-rolled coil prices stabilized at about US$1,250 per tonne, supported by Washington’s tariff policy and robust domestic demand, while steel prices advanced in the EU as the bloc slashed tariff-free steel import quotas, reducing overall supply, it said.

Meanwhile, raw material costs are hovering at high levels, with iron ore prices ranging from US$98 to US$100 per tonne and coking coal prices remaining unchanged at about US$240 per tonne, CSC said.

Courtesy: www.taipeitimes.com