List Prices Adjustment for 2016 March Domestic Sales

2016-01-26

On January 20, China Steel Corporation (CSC) held domestic price meeting for March, 2016 delivery and announced the following statement:
US economy remained steady growth, and economic momentum in Japan and Europe recovered modestly.US Federal Reserve lifted the rate first time in the past 10 years, which accelerate the currency depreciations among Asia economies and flowing out of funds from emerging market, especially in China. China is right now in the struggle of economic transition, with lower prices for commodities, and the instability of currency, its economic development and market confidence are facing impact and challenge.
However, the recent global financial risks reduced, while the downward pressure of RMB easing, and the currency of emerging economies became stable.

Leading by US economy, IMF predicted a 3.4% global growth in 2016, which was 0.3% more than the forecast in Oct. 2015. Complying with the improvement of global trading environment and depreciation of New Taiwan Dollars, the export is expected to rebound and stimulate the domestic demand, Directorate General of Budget, Accounting and Statistics (DGBAS) forecast GDP growth rate at 2.32% in 2016.

The international price of steel has plummeted over the past year, forcing the global steel mills to reduce production. With the ultra-low inventories in steel markets, several mills lifted the recent price offer, which is driving an upward trend in international steel market. The recent price offer in US and Europe already increased by US$30 ~ 70 per metric ton. 

China declared the determination to reduce capacity, which triggered a price hike about RMB 200~500 per metric ton in domestic market. Other main mills also raised their export price offer, which led to a boost trend of replenishing inventory in international steel market and market confidence holds steadily.

Tracking the upward rally in global steel markets, domestic buyers stop their wait and see approach, and downstream users start replenishing inventories, promoting a price rebound in steel market. In addition, U.S. Department of Commerce's preliminary determination shows that the dumping margin of imports of corrosion-resistant steel ("CORE") from Taiwan was zero, which could recover the export momentum of domestic related industry.

Even though the global steel market already showed a strong rebound, in order to enhance the downstream customers’ competitiveness, CSC has decided to slightly increase steel price by an average of 2.3%, or NT$ 307/MT for March, 2016 sales. Details are listed below. 
List Prices Adjustment for 2016 March Domestic Sales
Products    Adjusting Amount (NT$/MT)
Plates    +300
HRC    +300
CRC    +300
GI +600

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

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