Prices Adjustment for 2016 April and May Domestic Sales

2016-03-01

On Feb 25th, 2016, China Steel Corporation (CSC) held the domestic price meeting for 2016 April and May shipments and announced the following statement:
The US housing market kept going up, and Japan as well as European Union recently implemented negative interest rates in addition to further expansion of monetary easing policy. China was under economic transition in order to upgrade its economic structure. Oil producing countries confronted financial difficulty attributed to low oil prices. As global economy still faced lots of challenges, IMF downward its global economic growth prediction of 2016 to 3.4%; however, the predicted growth rate of 2016 was still 0.3% higher than that of 2015. Since the recent accelerated depreciation in Chinese Yuan (Renminbi) had caused global financial volatility, Fed was expected to slow down its pace of rate rising, encouraging capital flows back to emerging markets. While oil producing countries still failed to reach an agreement on whether to frozen or reduce oil production, oil price trend had become the most important index to decide global economy to go up or down.

China reinforced supply-side reform in target to cut excess capacity, which was expected to improve the current over-supply situation. Besides, the possible slowdown of Fed rate rising would bring international financial markets back to stable and stimulate oil price to rebound. As global steel markets were encouraged by the rise of iron ore price, coupled with replenishing inventories demand increased from the end of last year, global steel price rebounded comprehensively.

Along with the upward of global steel price, export and domestic price of downstream products both kept going up. Assessing foreign and domestic steel markets, as well as considering the better economic growth in this year predicted by the government, CSC has decided to gradually increase steel price, in order to enhance downstream producers’ export competitiveness. The average steel price rises by 3.1% or NT $ 502/MT for April and May sales. Details are listed below.

Prices Adjustment for 2016 April and May Domestic Sales
Products    Adjusting Amounts (NT$/MT)
Plates    +773
Bars and Rods    +300
HRC    +539
CRC    +623
EG    +600
ES    +730
GI    +570


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

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