Price Announcement for Domestic Sales of Fourth Quarter/October shipment of 2022
2022-09-16
September 15th, 2022, China Steel Corporation (CSC) hereby announces following statement, regarding forecast and sales price adjustment for fourth-quarter/ October shipment of 2022.
As the global uncertainties and inflation are soaring, Fed officials would continuously keep tightening monetary-policies. The surge of US dollar has exacerbate the currency depreciation around Asian and emerging market regions. While Russia‘s invasion of Ukraine remains, the G-7 nations imposed economic sanctions intensely against Russia. Then Russia halts Nord Stream Gas pipeline in return and ratchets up energy crisis in Europe accordingly. Recurrent outbreaks of COVID-19 continued to cast a shadow over consumer demand and drag on China’s economic growth. IMF has lowered its 2022 global economic growth forecasts to 3.2%. In contrast, Directorate-General of Budget, Accounting and Statistics forecasts the GDP for Taiwan is 3.76% which is kept in a stable pace. However, the impeding global growth will bring out tough challenges.
On the supply side, energy crunch in Europe made the natural gas prices skyrocketed to an extremely high level. Germany intends to set winter gas levy in October and it undoubtedly would dampen the operation of steel mills. ArcelorMittal decided to cut production by idling blast furnaces in Germany, France and Spain to adapt to the current challenging market conditions. Some underground facilities of POSCO Pohang Works were unexpectedly shut down due to the flooding caused by Typhoon Hinnamnor and have led to some supply delays on products. China remains to achieve the decarbonization goal and keeps on supply-side structure reform.
On the demand side, China is expected to bring more progressive movements to its economy and boost the steel demand of downstream industries such as construction, automobile and home appliance after the 20th National Congress. U.S. consumer spending continues to accelerate. Following the fiscal stimulus measures and infrastructure investments of U.S. and Europe, long-term steel demand is forecasted to grow. Taiwan government’s budget for public construction which is set to be increased 32% YoY to nearly 600 billion NTD in 2023, will provide a stronger domestic steel demand.
Energy shortage in European and Asian regions drove up the price of thermal coal higher than coking coal and caused a sharply increase in the recent price of Australian coking coal as well. Steel mills in the Asia and Europe have been suffering from the high cost and starting to raise offers in succession. ArcelorMittal increases HRC prices for October shipment by €20~70/mt. Nucor hikes HRC price by $55/st. Cleveland-Cliff and NLMK to raise HRC price by $75/st. Baosteel, Ansteel and Ben Gang keep their prices unchanged for October bookings. It revealed the signal that steel prices have hit the bottom.
Considering of domestic downstream customers to be continuously under the pressure of weak demand from end users and relatively higher inventory level, and also the increasing raw materials and energy costs of steel production, CSC decides to provide a price reduction between 0~2,000 NTD per metric ton to support and maintain a healthy operating environment for downstream industries, and to defense from the competition of low price import products.
On September 15, 2022, Taiwan Ministry of Economic Affairs announced to extend the anti-dumping duties on carbon steel plate (from Brazil, China, India, Indonesia, South Korea and Ukraine) and coated flat steel products (from China and South Korea) for a further five years for preventing domestic market from unreasonable price competition, effective immediately. In response to the volatile global steel market, CSC has moderately adjusted production schedule and marketing strategies in order to reduce the negative supply impact to the markets and support downstream customers.
Prices adjustment of domestic sales for fourth-quarter/October shipment of 2022 are listed as follows：
|
Offer Basis |
Products |
Average Adjusted Amounts (NTD/MT) |
|
October shipment |
HR Plate |
0 |
|
HR |
0 |
|
|
CR |
0 |
|
|
EG |
0 |
|
|
GI |
0 |
|
|
ES |
0 |
|
|
Offer Basis |
Products |
Average Adjusted Amounts (NTD/MT) |
|
Fourth-quarter shipment |
Plate |
-2,000 |
|
HR Plate |
-2,000 |
|
|
Bar and wire rod |
-2,000 |
|
|
HR |
-2,000 |
|
|
CR |
-2,000 |
|
|
Automotive usage |
-1,000 |
Information Origin : http://www.csc.com.tw/CS/CSC_E/NC/neli/neli.aspx
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