China’s largest steelmaker Sinosteel Group (Sinosteel) said yesterday that domestic steel prices for next month’s delivery will accelerate by 2.23% as demand adjusts sharply as panic buying triggered by Russia’s invasion of Ukraine last month wanes..
Sinosteel also kept steel prices unchanged for the next quarter compared to the current quarter, given the unfavorable short-term outlook.
Uncertainty about the trajectory of the COVID-19 pandemic and rising global inflationary pressures have exacerbated the slowdown in steel demand, the Kaohsiung-based company said in a statement.
Substantial measures taken by the United States and the European Union this month to rein in inflation could slow the global economic recovery, it added.
”The outbreak of the Ukrainian war led to supply shortages, triggering a panic in demand for inventory build-up in March and April, sending steel prices soaring,” it said.”Affected by the slowdown, many customers in the US and Europe froze new orders in May.”
The company said the downturn had spread to Asia, as evidenced by a general pullback in steel prices there.
Imports of low-priced steel products from China, South Korea, India and Russia have also negatively affected the local market, it said.
The company said Sinosteel has asked the Taiwan Iron and Steel Association to activate an anti-dumping complaint monitoring mechanism if abnormal offers are found to harm the local market.
”As customers see a sharp drop in new orders and thin volumes, the company has lowered prices by NT$600 to NT$1,500 per ton for delivery next month,” the statement said.
”The company hopes that the new offer will help accelerate the market to the lowest level and help customers become more competitive against export competitors,” it said.
Sinosteel said it saw early signs of a rebound as China’s Baowu Steel and Anshan Steel had stopped cutting prices and kept their offers flat for next month’s delivery.
Sinosteel decided to cut prices for all hot-rolled steel sheets and coils by NT$1,500 a tonne, adding that cold-rolled coils would also be cut by NT$1,500 a tonne.
According to Sinosteel’s price adjustment plan, the cost of anti-fingerprint steel sheets and galvanized steel coils for construction will drop by NT$1,200 and NT$1,500 per ton, respectively.
Prices for hot-dip galvanized coil used in household appliances, computers and other equipment will drop by NT$1,200/t, the company said.
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Post time: Jul-14-2022