China Steel Corp (中鋼), the nation’s largest steelmaker, yesterday raised major steel product prices by NT$300 (US$9.71) per tonne for domestic deliveries next month, thanks to improving domestic demand from makers of vehicles, as well as computers and servers due to growing artificial intelligence (AI) applications.
Domestic steel consumption is poised to recover from the trough as inventory correction is nearing an end, the Kaohsiung-based steelmaker said in a statement.
The market outlook is positive, aided by the government’s NT$680 billion public infrastructure project, giving a further lift to steel demand, the company said.
“Market confidence is recovering. Inventory rebuild demand is poised to emerge,” China Steel said. “As the steel market is in the nascent stage of a recovery, the company is raising steel prices moderately to reflect increases in raw material costs and foreign exchange rate fluctuations.”
The global prices of coking coal and iron ore have hit the bottom and are poised for a rebound, China Steel said.
The price of iron ore has lingered at the bottom at about US$105 to US$115 per tonne, while the price of coking coal has recovered to between US$225 and US$235 per tonne, China Steel said.
Snapping two straight months of price reductions, China Steel raised the prices of hot-rolled steel plates, hot-rolled steel coils and cold-rolled steel plates by NT$300 per tonne.
