Prices Announcement for Domestic Sales in the Third Quarter of 2019
2019-05-24
On May 24th, 2019, China Steel Corporation (CSC) held a domestic price meeting for the third quarter domestic sales and announced the following statement:Due to the unresolved trade conflict between the United States and China, the uncertainty of international political and economic has risen, impacting the global economic growth momentum this year. In April, The International Monetary Fund (IMF) slightly lowered its global economic growth rate by 0.2% to 3.3% in 2019, same as Organization for Economic Co-operation and Development (OECD) estimated. Even though international research institutes predict the future expansion slow-down, the global economy is still in the growth stage.
In early May, US President Trump suddenly announced that the tariff hike of 200 billion US dollars goods import from China from 10% to 25%, which shocked the international market. On the other hand, the United States has cancelled the tariff on steel and aluminum from Mexico and Canada, and delay in imposing tariffs on vehicle and parts from EU and Japan, which will alleviate current slump in international trade. Looking at the current state of the main countries, the US Federal Reserve sees no rate hike this year. It is expected to keep the growth momentum, and the economic environment stable. In addition, China has introduced domestic demand stimulus and tax reduction policies to reduce the impact of trade wars. The EU and Japanese economy is at a low level; meanwhile, the Korean economy is also suffering from the decline in China.
Global uncertainties have caused short-term turmoil in the international steel market, end users have reduced their inventory level in response. Although international steel price bottomed out in February this year, it immediately fell into a correction. The cost of raw materials remained high and even went up, making steel mills worldside actively adjust their strategies to avoid loss. Major steel mills such as Baowu and Shougang keep price unchanged in June shipment, showing high raw material cost have supported the steel prices even the sluggish market, and short-term international steel prices have no room to fall. In the future, if the US-China trade negotiations turn optimistic and the market wait-and-see atmosphere dissipate, the restocking demand will be released, and boost the international steel prices once again.
The monitoring indicator released by NDC of Executive Yuan in March shows transitional, and the export value in April fell for six consecutive months, indicating that international trade protectionism has impacted Taiwan’s export oriented economy, but some industries have the opportunity to benefit from order transfer effect. At present, the government is actively implementing infrastructure and encouraging Taiwanese enterprises returning from China. Taiwan economy is expected to regain its vitality soon.
Although China Steel Corporation(CSC) faces operational challenges as high material cost, CSC still decided to moderately lower the price of various steel products in the third quarter of 2019, in order to improve downstream competitiveness and reflects the close partnership between the upstream and downstream industry. The adjustment ranges of each steel products are shown as the following Table. 。
|
Prices Announcement for Domestic Sales in the Third Quarter of 2019: |
|
|
Products |
Average Adjusting Amount(NTD/MT) |
|
Plates |
-529 |
|
Bars and Rods |
-1,066 |
|
HRC(Except Re-rolling material) |
-1,000 |
|
CRC |
-941 |
|
EG |
-600 |
|
ES |
-750 |
|
GI |
-800 |
Information Origin : http://www.csc.com.tw/CS/CSC_E/NC/neli/neli.aspx
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