Report by Wang,Shang-Yi
CSC (China Steel Corporation) announced a planned reduction in the price of wire rods for the third quarter. The price decrease is set at NT$2,000 per metric ton. This week, Taiwanese steel mills, including Feng Hsin, Wei Chih, and TowFing Steel, have followed suit and adjusted their prices before the long weekend.
CSC’s wire rod price for the third quarter is lowered by NT$2,000 per metric ton. Feng Hsing, a direct bar producer, also reduced their prices by NT$1,000 per metric ton on June 19th. The S45C steel grade experienced a price drop of NT$1,000, while carbon steel bars witnessed an overall decline of NT$2,000 per metric ton during May and June. Additionally, the alloy surcharge was adjusted down by an extra NT$500. Wei Chih’s price reduction aligns with Feng Hsing’s.
TowFing Steel announced an immediate adjustment in product prices on June 20th. CSC’s large-sized bar products were decreased by NT$2,000 per metric ton, while non-CSC materials experienced a price reduction of NT$1,000 per metric ton. Chrome-molybdenum alloy steel was adjusted down by NT$1,500 per metric ton. As for polished steel bars, carbon steel witnessed a reduction of NT$1,000 per metric ton, and the 1215 and 1144 series experienced price drops of NT$1,000 and NT$2,000 per metric ton, respectively.
Chiu Huang-chao, CEO of Tofu Steel, stated that there is still a gap between CSC’s prices and international market trends, especially considering that the circulating price for imported bars in China has already dropped to NT$22,500 per metric ton. The price reduction for wire rods in the third quarter can only be considered moderate. Direct bar steel mills have successively followed suit, but it remains to be seen how the market will react in July.
Chiu Huang-chao pointed out that the recovery momentum for the third quarter may be limited. Up until now, feedback from direct bar customers has been poor, and it is estimated that the order situation for exports in the third quarter may not be ideal. CSC has just released the new price list, and steel mills are still in the process of quoting prices to overseas customers. Therefore, steel mills can only continue to monitor the situation.
Direct bar producers are sequentially opening with lower prices. Major mills are expected to release their new price lists after the long weekend, and the market expects the price reduction to be similar to CSC’s, at around NT$2,000 per metric ton.
Coverpicture by shutterstock
