Prices Announcement for Domestic Sales in the Second-Quarter/April of 2021

2021-03-12

On March 12th, 2021, China Steel Corporation (CSC) held a price meeting for domestic sales of second-quarter/April shipment in 2021 and announced the following statement:

The situation of the pandemic seems to be improved gradually with the vaccination in major economies. In the US, the government announced to maintain current monetary easing policy and had passed $1.9 trillion COVID-19 relief package which brought back the confidence to the economics. In Taiwan, Accounting and Statistics (DGBAS) and National Development Council (NDC) both raised economic growth rate of 2021 up to 4.64% as economic shines due to the continuous growth in local investments and export orders, reaching a new high since 2014.

In wake of the strong recovery in automobile, construction and home appliances sections around the world, worldsteel and ArcelorMittal forecast global steel demand to grow by 4.1% and 5.5% in 2021. As for China, this year is the first year of its 14th Five-Year Plan for economic and social development, China sets GDP growth rate at minimum 6%, with it aims to expand construction investment, speed up developing electric vehicles and so on.

The supply of steel industry is yet to recover to pre-pandemic level. Inventories in major economies are at record low level. Steel inventories in the US are reaching to 3-year low and major sheet products in Japan are dropping to the lowest level since 2011, not only causing downstream industries lack of materials but also pushing up steel prices. On the other side, China will restrict and reduce its steel output than last year in order to fulfill its environmental protection target and might reduce export rebate. These factors will support steel prices in short term.

Mills around the world are facing high raw material costs as the price of iron ore has passed $178/MT, nearly reaching the historical point of $194/MT. Meanwhile, Hot-rolled price in the US has surged to record high $1,400/MT and price in EU just broke $900/MT. As steel prices are soaring in the west, Baosteel raised Hot-rolled products by CNY300/MT ($46/MT) for April shipment on March 9th, FHS also raised Hot-rolled products by $45/MT for domestic May shipment on March 10th and other Asian mills are catching up the trend as well.

Demand from downstream industries is projected to pick up further while steel industry entering traditional peak season. High raw material costs also allows mills to raise steel prices, especially for our quarterly period products which cumulative markup are far behind than those monthly products and competitors.

CSC adheres to the modest pricing strategy in order to fully support and strengthen the competitiveness of all our customers. After evaluating the market situation, considering the raw material cost and benefits of our customers, CSC hereby announces to raise 1.7% in average for April-shipment products and 8.3% in average for second-quarter shipment products of domestic sales in 2021. Prices adjustment shown as below table.

Prices adjustment of domestic sales for second-quarter/April shipment in 2021

Offer Basis	Products	Average Adjusted Amounts (NTD/MT)
Monthly	HR	+450
	CR	+450
	ES	+600~1,200
	GI	+450
Quarterly	Plate	+2,000~2,500
	Bar and wire rod	+2,000
	HR	+2,800
	CR	+2,500~2,800
	EG	+3,000
	GI	+2,800
	Automotive usage	+2,800

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

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