China Steel cuts product prices for first time in over a year

Taipei, Nov. 16 (CNA) China Steel Corp., the largest steelmaker in Taiwan, has lowered its domestic wholesale product prices for December contracts in line with fluctuations on the international markets, marking the company's first price cut since July 2020.

In a statement released Monday, China Steel said it had cut December contract wholesale prices by 1.65 percent on average with most of its products, including hot-rolled steel plates and hot-rolled and cold-rolled items marked down by NT$600 (US$21.58) per metric ton.

However, the prices of electrical steel coils and electro-galvanized steel coils will remain unchanged for December contracts, China Steel said.

The price cuts by China Steel came after Formosa Ha Tinh Steel Corp. in Vietnam and Baosteel Group in China lowered their product prices by 200-300 Chinese yuan (US$31.34-47.01) and US$40, respectively, per metric ton recently.

China Steel said the global steel market was faced with inventory adjustments, while rising freight rates were also a factor, sending ripples through the markets and creating volatility.

The price cuts by Formosa Ha Tinh Steel and Baosteel have affected market confidence to some extent amid rising concerns over demand, China Steel said.

China Steel added that its latest wholesale price cuts for December contracts were also intended to lower the financial burdens shouldered by downstream steelmakers at a time of higher production costs, including rising raw material prices and increasing freight rates.

The steelmaker cited a forecast made by the World Steel Association as saying that steel demand for 2022 is expected to rise by only 2.2 percent or 4,100 metric tons from this year to 1.896 billion tons, adding that the association appeared cautious about the market outlook.