May 02, 2008
CSC to Raise Steel Prices by 20% in Q3
Taipei, April 30, 2008 (CENS)--Forced by price hikes in raw materials as coal internationally, China Steel Corporation (CSC), Taiwan`s largest integrated steel mill, is considering raising product prices by 20% on products to be delivered in the third quarter of this year to offset the increase in production costs.
With coal prices expected to rise by US$200 per metric ton globally, South Korea`s largest steel producer-Pohang Steel Co. (POSCO) will raise selling prices on such products as cold- and hot-rolled steel domestically. CSC believes the prices for smelting coal is on the rise internationally.
Based on the projected consumption of 0.7 metric tons of coal to produce a metric ton of steel products, CSC is expected to experience an increase of US$140 in cost to roll out a metric ton of steel. To offset such increase, CSC will raise domestic sale price of its products by 20%, to be discussed at a production-sales meeting slated for the end of May.
L.M. Chung, executive vice president of CSC, said that his company has topurchase 8.5 million metric tons of smelting coal from Australia and Canada yearly, leading to an increase of NT$20 billion (US$662.25 million atUS$1:NT$30.2) in the procurement cost of coal this year.
An industry insider believes major Asian steel makers as Nippon Steel Corp.of Japan, BaoSteel Co. of mainland China, and CSC will all raise prices beginning the second half of May.
(by Ben Shen)