China Steel raises prices by an average of 2.5 percent

China Steel Corp yesterday said it would raise domestic steel prices an average of 2.5 percent per tonne for next month's delivery, citing higher raw material prices and a recovery in demand amid improved economic outlook.

Rising prices for iron ore, coking coal and some alloying elements, along with a shortage of containers and higher freight rates, are positively affecting the outlook for steel prices, the country's only steel producer said in a statement.

CSC said its decision reflects recent price increases by Chinese industry peers Baoshan Iron & Steel Co and Anshan Iron and Steel Group Corp.

It also took into account the good operating situation in the domestic refining and marketing industries, the company said.

The price of hot rolled steel sheet will rise by NT $ 700 (USD 24.66) per tonne, while the price of hot rolled steel and wire rod will rise by NT $ 450 per tonne, the company said.

The ND $ 700 /ton price hike will also affect hot rolled carbon steel as well as cold rolled sheets and coils and hot dipped galvanized sheets.

The price of electrical sheets will rise by NT $ 2,000 per tonne for low to mid-quality products and by NT $ 2,500 per tonne for high-grade products, CSC said.

Last week, the company reported pre-tax profit of NT $ 6.26 billion for the October-December quarter, the highest since the fourth quarter of 2018, with earnings before tax per share of NT $ 0.19.

For the whole of last year, CSC's pre-tax profit reached NT $ 2.77 billion, down 78.36% from 2019, when there were NT $ 12.8 billion. As a result, earnings per share before tax were NT $ 0.19.

CSC has increased its domestic quoted prices on a monthly basis since the fourth quarter of last year due to strong restocking demand for steel used in automobiles, household appliances and equipment, as well as rising raw material prices.

The company said it expects stable market demand this year, citing continued growth in Taiwan's economy and a gradual recovery in the global economy following the rollout of COVID-19 vaccination programs in the United States and Europe.