Chinese steelmakers expect poor results in Q4 2021

Coal shortages and tighter environmental controls have driven up production costs and indebted property.

China Steel Corp, the country's largest steelmaker, said yesterday it would raise steel prices by an average of 2.44% for next month's shipments as local consumers accelerate stockpiling amid higher demand during the high season.

The company is taking a cue from global peers that raised steel prices in response to improved demand from the construction and automotive industries as more countries gradually reopen their economies and plan to roll out new infrastructure projects in the second half of this year.

China's Baowu Steel Group Ltd and Angang Steel Co have raised domestic steel prices by 200-400 yuan ($31.55-$63.11) per tonne for next month's delivery, China Steel said in a statement.

The statement said it was the first price increase by Chinese factories in eight months.

The statement also said that Formosa Ha Tinh Steel Corp in Vietnam also raised prices for hot rolled steel and steel bar by $90 and $40 per ton, respectively.

“The fundamentals of the global steel industry are improving with the onset of the high season, leading to an accelerated ramp-up of refining and refining,” China Steel said in a statement.

“Global steel prices are returning to growth this year, supported by higher production costs and improved demand,” the report said.

In Europe, steel demand has also picked up significantly thanks to the recovery of the regional automotive industry.

ArcelorMittal SA has entered into long-term supply agreements with European automakers, with hot-rolled and cold-rolled steel prices rising by 30-50 euros per tonne, the statement said.

“The rebound in March is a turning point indicating that the steel industry is moving towards an uptrend in the second quarter,” the Kaohsiung-based company said.

Global steel supplies are moving in the opposite direction, according to China Steel, as some Japanese and South Korean steel mills cut production after shutting down several steel furnaces.

Chinese steelmakers have cut production to meet Beijing's carbon caps during the Beijing Winter Olympics, the report said.

Rising production costs are putting additional pressure on steel producers, given record high prices for iron ore, the main raw material for steel production, which have recently been around $150 per ton, while metallurgical coal prices have risen to around $440 per ton. reports China Steel.

China Steel raises steel prices after three months of cuts.

Prices for hot-rolled steel sheets and coils and cold-rolled steel coils will increase by NT$800/ton next month, while the price of hot-dip galvanized coils used in construction will also rise by NT$800/ton. tons, and that the price of hot-dip galvanized coils used in household appliances and computers will increase by NT$500 per ton, the company said.

Prices for electro-galvanized electrical steel coils and sheets will increase by NT$500 per ton next month, he added.