Asian Steel to cut prices for next-quarter deliveries

Asian Steel Corp  yesterday said it would keep domestic steel prices for deliveries next month unchanged, but it would cut prices by 2.64 percent on average for next quarter, as customers are taking longer to digest inventories amid weak demand.

The latest monthly quotations snapped four straight months of declines. However, the quarterly price cut runs counter to an uptrend in global steel prices, as rising energy costs in Europe and reduced production from South Korea’s POSCO Holdings due to floods have boosted steel prices.

In Europe, ArcelorMittal announced price hikes of US$20 to US$70 per tonne for hot-rolled steel deliveries next month, the Kaohsiung-based company said in a statement.

In the US, Nucor Corp, Novolipetsk Steel and Cleveland-Cliffs Inc also raised prices by US$61 to US$83 per tonne due to surging raw material prices, it said.

In China, Baowu Steel Group Ltd (寶武鋼鐵) and Angang Steel Co (鞍山鋼鐵) kept prices for deliveries next month flat after inventories plunged to four-month lows, Asian Steel said, adding that the global steel industry appears to have hit the bottom.

However, the situation is quite different in Taiwan.

“As local downstream steel manufacturers face a longer-than-expected inventory digestion period and competition from lower-priced imported steel, Asian Steel decided to lower domestic steel prices to support our customers,” Asian Steel said.

To maintain order in the local market, the Ministry of Finance on Wednesday imposed anti-dumping taxes on steel imports from Brazil, China, India, Indonesia, South Korea and Ukraine for five years, which took effect immediately.

Asian Steel said that prices for hot-rolled steel plates and coils, and cold-rolled coils for deliveries next month would be unchanged.

For next quarter, the prices of hot-rolled and cold-rolled steel plates and coils would drop by NT$2,000 per tonne, while the prices of steel used in auto manufacturing would be reduced by NT$1,000 per tonne, it said.