Price Announcement for Domestic Sales of Second Quarter/April shipment of 2022
2022-03-17
March 15th, 2022, China Steel Corporation (CSC) hereby announces following statement, regarding forecast and sales price adjustment for second-quarter/April shipment of 2022.
In 2021, Taiwan’s export performance ranked top ten in the world with total value of 446.4 billion US dollars. In January 2022, export orders maintained growth in twenty-three consecutive months. As major economies gradually overcome the pandemic and propel investment and production momentum, the Executive Yuan revised GDP growth up to 4.42%, 0.27% higher than previous forecast. As steel demand turns positive, worldsteel forecasts that the global steel demand will increase to 1.896 billion tons in 2022.However the Russia-Ukraine war has not only exacerbated geopolitical conflicts, but also pushed up the prices of bulk commodities. Meanwhile, market estimates the risk of exchange rate fluctuation could create uncertainty for the recovery and growth to the global economy as the Fed is planning to hike interest rates in March.
Global economy has been affected seriously as more and more countries imposed sanctions on Russia due to the conflict with Ukraine. Both Russia and Ukraine are major players in steel industry, with 100 million tons of crude steel output per year and more than 40 million tons of steel export, mainly to Europe and Asia. At present, the import and export trade of Russia’s steel industry has been severely hampered due to the sanctions. Mariupol, the main city of Ukraine’s steel industry, is also deeply involved in the conflict. Steel mills such as Azovstal and Ilyich, have been affected and temporarily shut down. On the other hand, Russia is also known as the second largest producer of natural gas, third largest producer of fossil fuel and sixth largest producer of coal, it also accounts more than 50% of nickel export around the world. The commodity shock of Russia-Ukraine crisis is threatening the fragile post-pandemic recovery of the global economy.
Recently steel mills are under huge cost pressures as Australia coal export price exceeded FOB US$660/MT record high due to the flood in Queensland and the Russia-Ukraine war. However, steel mills in China use nearly 90% of their own coal mines with costs around US$400/MT, which leads to cost advantage over competing mills. Under global steel market situation, in Europe, ArcelorMittal already raised hot-rolled prices with cumulative increase of €180/MT(US$196/MT) to €1,150/MT(US$1,249/MT) since March and is expecting to raise €200/MT further. In America, local hot-rolled price rebounded more than US$200/MT since February as local mills turn to Europe market. In Asia, Korea and India mills also temporarily stop offering to Asia customers and focus on Europe markets. Mills are targeting CFR US$1,000/MT for its next offer to Asia as well. Baosteel and FHS both raised prices for April to May shipment. NSC and Toyota also settled negotiation to raise ¥20,000/MT for steel products, start from first half of fiscal year 2022.
International steel prices are expected to surge even more than last year, due to not only the entry of traditional peak season for downstream industries, but also the severe supply disturbance and record high bulk commodities costs.
CSC fulfills only half of the steel demand in Taiwan. Despite facing huge raw material cost pressure, in order to enhance the resilience of steel industry and maintain the competitiveness of downstream industries. CSC adheres to the modest and gradual pricing policy. CSC hereby announces to raise the prices by 5.83% in average for April-shipment and the second-quarter shipment products of domestic sales in 2022. Prices adjustment shown as below table.
Prices adjustment of domestic sales for second-quarter/April shipment 0f 2022.
|
Offer Basis |
Products |
Average Adjusted Amounts (NTD/MT) |
|
Monthly |
HR Plate |
2,100 |
|
HR |
2,100 |
|
|
CR |
2,100 |
|
|
EG |
1,000~1,500 |
|
|
GI |
1,500~2,100 |
|
|
ES |
1,500 |
|
|
Offer Basis |
Products |
Average Adjusted Amounts (NTD/MT) |
|
Quarterly |
Plate |
2,200 |
|
HR Plate |
2,400 |
|
|
Bar and wire rod |
2,200 |
|
|
HR |
2,400 |
|
|
CR |
2,000~2,400 |
|
|
Automotive usage |
2,400 |
Information Origin : http://www.csc.com.tw/CS/CSC_E/NC/neli/neli.aspx
Back