Taiwan CSC hikes carbon steel HRC, CRC list prices for Dec sales

The decision reflects the improved macroeconomic environment in the global market and the company's optimism about the steel business in the weeks ahead, Mysteel Global noted.

The wait-and-see sentiment in the global market has softened after the U.S. presidential election, CSC observed, while the central government in the Chinese mainland has launched new financial measures to ease the debt pressure for local governments.

Meanwhile, the uncertainty destabilizing geopolitics is expected to ease in 2025, CSC pointed out in the release, remarking that the United States and Europe have been cutting interest rates which may stimulate consumption and investment, thereby boosting exports for Taiwanese companies.

The Kaohsiung-headquartered steel giant is optimistic about the recovery in global steel demand, noting that the effect of stimulus policies in the Chinese mainland has emerged gradually. For example, China's Purchasing Managers' Index (PMI) for the manufacturing industry had recovered to the expansion zone last month after struggling below 50 over the prior six months to stand at 50.1 for October, up by 0.3 point on month.

Besides, for the third quarter, the growth rate of personal expenditure in the US came in at 3.7% as against the 2.8% for the previous quarter, suggesting the steady recovery in the country's consumption sector, the company mentioned in the release.

In parallel, global steel supply may continue to tighten. CSC noted that total crude steel output among the 71 countries surveyed by the World Steel Association (WSA) fell by 4.7% on year to 143.6 million tonnes in September, while the volume in the Chinese mainland had dropped by a larger 6.1% on year to 77.07 million tonnes.

Steel producers' steelmaking costs remain at a relatively high level as the prices of iron ore and coal have been hovering high, lending some support to steel prices. Major steel mills in Europe and the US have hiked their list prices of hot-rolled coil (HRC), and steel prices in Asia are likely to strengthen after the current fluctuation, CSC suggested in the release.

Finished steel prices in the Chinese mainland retreated recently after the significant rise seen earlier in response to the government's economic stimulus measures. For local sales in December, Baoshan Iron & Steel Co, the listed arm of the world's top steelmaker China Baowu Steel Group, has decided to roll over the list prices of its carbon steel HRC, as Mysteel Global reported.

In order to bolster market confidence in Taiwan and to help its customers improve their competitiveness, CSC has decided to take a moderate pricing tactic for local sales in December, as the manufacturing sector and demand from end-users may need more time to resume.

CSC's price adjustments of selected products for December sales.

Source: CSC

Written by Nancy Zheng, zhengmm@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com