Announcement for Domestic Steel Prices for the Second Quarter /April Shipments of 2024
2024-03-26
March 14th, 2024, China Steel Corporation (CSC) hereby announces following statement, regarding the forecast and sales price adjustment for the second-quarter/April shipment of 2024.
The global economy is experiencing a mild recovery, with several research institutions revising their economic growth forecasts upward. The IMF has adjusted its global GDP growth projection for this year from the initial estimate of 2.9% to 3.1%. Among them, consumer spending in the United States is robust, with the largest increase in economic growth rate. The economies in Europe are also on a path to stabilization, driving the export momentum for Asian countries. The recent policy decisions of Chinese government have set this year's GDP growth target at 5%, unveiling stronger stimulus policies to bolster the economy. Southeast Asia and India are experiencing an expansion in investment driven by private sector investment and infrastructure development. Taiwan has witnessed a boost in export orders as the trade and investment are gradually picking up, breaking free from the bottom and continuing to rise, and robust private consumption continues to fuel domestic demand. After 16-months pauses, the National Development Council's signal turned positive in January, and the Directorate-General of Budget, Accounting and Statistics revised Taiwan's GDP growth forecast for this year to 3.43%, surpassing last year's 1.4%, marking the best performance in recent years.
In terms of steel demand, S&P Global reported that the manufacturing PMI index for the United States rose to 52.2 in February from 50.7 in January, the highest level since July 2022. India's and ASEAN's PMI have risen to 59.6 and 50.4 respectively, maintaining expansionary trends. China's proposal to issue "ultra-long-term special national bonds" for major strategic infrastructure projects has boosted demand for construction steel. Taiwan's economy is gradually recovering, with sustained demand for steel in factories and commercial buildings, etc. MarkLines estimates that global automotive sales will reach 92.25 million vehicles in 2024, with an annual growth rate of 2.7%, indicating a positive outlook for the global steel market. As for steel supply, according to worldsteel statistics, global crude steel production was 148 million tons in January, down by 1.6% year-on-year, marking the second consecutive month of decline. This contributes to the balance of supply and demand in the steel industry, supporting the positive development of the steel market.
In terms of raw materials, seasonal factors such as the Lunar New Year and cold weather, coupled with Chinese steel mills reducing production due to poor profitability, have led to a weak demand and subsequently a fall in coking coal and iron ore prices. However, overall steelmaking costs remain high, and since last year, most steel mills have experienced low profitability, and the average cost of raw material inventory remains high. Especially in recent times, the futures prices of iron ore have remained consistently higher than the long-term average level (approximately $70 to $90 per ton). Conditions persist for steel mills to prevent the lost expansion, with cost considerations still underpinning steel prices.
In terms of market conditions, the recent correction in steel prices in Europe and America is seen as a reasonable adjustment following the overheating surge in the fourth quarter of last year. U.S. steelmakers Cleveland-Cliffs and Nucor have announced plans to increase hot-rolled EXW prices on March 7th, signaling a halt in price declines. Demand in the Asian steel market remains sluggish, with weak momentum in steel prices, leading to a challenging business environment for steel mills. Even that, Baowu Steel's flat product prices for April have kept flat or risen, marking the tenth consecutive month of stable or higher prices, which reflect that the outlook remains bright. Following the fluctuation of global steel prices in first quarter, it is expected that prices will heat up again in the second quarter.
Since last October, the global steel market has been on the rise from its low point. Also at that time, market expectations of the Fed's interest rate cut, potentially as early as March this year, led to a release of funds, boosting the steel market in the early part of this year's first quarter. However, due to the continued steady growth of the US economy and employment, there are speculations that the timing of the Fed's interest rate cut may be postponed after June of this year. At that time, the rate cut is expected to stimulate investment, drive consumption, and invigorate the economy, particularly benefiting real estates, equipment, and automobile sales. This will also stimulate demand for steel in related downstream industries, maintaining the overall positive trend in the steel market. It is still expected that the steel market will continue to improve gradually in the coming quarters.
To aid customers in navigating the current steel market adjustment period and support order momentum, CSC maintain our consistent pricing principle of "aligning with trends, being appropriate, and ensuring stability." For our monthly pricing products in April, we closely track market trends, respond to international market fluctuations and customer demands, and keep prices flat this month. Also, anticipating a potential uptick in demand after May.
As for our quarterly pricing products in the second quarter, prices are adjusted based on the varying demand intensity and order cycles of downstream industries, while considering the current gradual recovery of the steel market. We offer flat or modestly increased pricing to enhance customer confidence in material procurement.
Additionally, in light of the significant surge of low-priced steel imports in recent years, which has disrupted market principle in Taiwan, we will actively gather data and evidence to take necessary measures at the opportune moment to protect the overall health of the domestic industry.
CSC hereby announces the prices adjustments of domestic steel sales for the second-quarter and April shipments of 2024 are listed below：
|
Offer |
Products |
Average Adjusted Amounts |
|
April |
HR Plate |
+0 |
|
HR |
+0 |
|
|
CR |
+0 |
|
|
EG |
+0 |
|
|
GI (Constructing) |
+0 |
|
|
GI (Appliances) |
+0 |
|
|
ES |
+0 |
|
|
Second-quarter |
||
|
Plate |
+300 |
|
|
HR Plate |
+0 |
|
|
Bar and wire rod |
+0 |
|
|
HR (Medium-High Carbon, Tooling) |
+0 |
|
|
CR (Medium-High Carbon, Tooling) |
+0 |
|
|
CR (Drum) |
+0 |
|
|
Automotive usage |
+0 |
Information Origin : http://www.csc.com.tw/CS/CSC_E/NC/neli/neli.aspx
Back