List Prices Adjustment for 2016 January-February Domestic Sales

2015-12-03

On November 26, China Steel Corporation (CSC) held domestic price meeting for 2016 January-February delivery and announced the following statement:
Emerging economies have slowed down. Japan and Europe are facing the threat of recession. The US economic boom can’t reverse the weakening trend in global economy. As U.S. interest rates set to rise, global financial markets and already depressed international raw material markets are adversely impacted. Increasing uncertainty risks continue to drag down consumption and investment, and have negative impacts on global economic growth. OECD revised down again its forecasts for 2015 global economic growth to 2.9%.
Japan and Europe increase the scale of quantitative easing to prevent deflation. However, the refugee crisis and terrorist attacks are unfavorable to the economic recovery of European countries. Economic growth momentum in China has slowed down apparently. Stimulus measures, including monetary easing, have been rolled out. Due to weak global economic growth, Taiwan’s domestic and export sales have come down and 2015 GDP growth rate might fall below 1%. After US increases interest rate, the impact on global economy will decrease. In 2016, with countries around the world pushing economic growth, Taiwan’s export is expected to recover and boost domestic demand. Directorate General of Budget, Accounting and Statistics (DGBAS) forecast 2016 GDP growth rate will rebound to 2.7%.
Global steel market remains sluggish. Due to slowdown in China’s economic growth, World Steel Association predicts global steel demand in 2015 will decline to 1.7%. The lack of demand, coupled with flooding of cheap Chinese steel all over the world, lead to extremely fragile market confidence. As buyers keep low inventory, steel prices continue to fall. Demand in peak season Q4 fell below expectation. Steel mills are facing unprecedented dilemma. Large steel mills cut their production one after another.
In addition to dismal economy in Taiwan, downstream steel industry is facing price competition from Asia and the challenge of trade protectionism and tariff barriers. Therefore, CSC has decided to reduce the prices of all products. Details are listed below. Meanwhile, CSC is asking that critical circumstances and retroactive duties be placed on plate and galvanized steel imports.
List Prices Adjustment for 2016 January-February Domestic Sales

Products    Adjusting Amount (NT$/MT)
Plates    
-564
Bars and Rods    
-970
HRC    
-859
CRC    
-734
EG    
-800
ES    
-870
GI    
-541

Information Origin : http://www.csc.com.tw/CS/CSC_E/NC/neli/neli.aspx

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