Price Adjustment for 2017 Fourth Quarter Domestic Prices

Date：2017/09/06

On August 25th, China Steel Corporation (CSC) held domestic price meeting for fourth quarter (October-December) shipments and announced the following statement:
Based on the OECD's latest forecast, 2017 global economic growth continues to accelerate, as the growth in Asia and Europe region are both stronger than previous expectation. Arcelor Mittal, the world's largest steel mill, also revised up 2017 global steel demand to 2.5~3.0% y-o-y, which drives international steel prices surge unusually in off-season. U.S. and European mills raised steel prices actively. For hot-rolled steel prices, U.S. mills lifted up $94~110/MT during June-August, and European mills raised $35/MT in July. Some steel mills even have already announced that the offer under 625/MT is not acceptable now.
As China continues to implement supply-side reform, substandard steel shutdown and environmental protection, the expectation of tight supply has caused steel and raw material prices keep rising. Taking hot-rolled as an example, China domestic prices soar by RMB 840/MT ($126/MT) compared to last quarter, export quotes also increase by more than $150/MT; ex-work prices from major Chinese steel mills such as Bao Steel, Wu Steel and Angang, are also raised up by RMB 650~1,050/MT ($97~112/MT) compared to last quarter. Moreover, since China's steel stocks have lowered down by 45% from the highest level, and the impacts of steel production limitation in winter have gradually appeared, the strength of price rising in China is expected to be more stable and stronger.
Affected by rising international steel prices and the upcoming of high-season (the fourth quarter), restocking demand from downstream industries are expected to be stronger. Spurred by surging steel prices in global market, domestic and export prices have gradually increased; yet, CSC's prices are obviously behind the international level. Considering downstream consumers' export competitiveness in global market, CSC decides to moderately increase the Q4 prices by an average NTD 1,144/MT, or 5.6%.

Prices adjustment for 2017 Q4 Domestic Sales
Products
Average Adjusted Amounts (NTD/MT)
Plate
+807
Bars and Rods
+1,200
HRC
+1,195
CRC
+1,054
EG
+700
ES
+1,452
GI
+962


CSC - China Steel Corporation published this content on 06 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 September 2017 07:27:05 UTC.

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