Asian Steel Group (亚洲钢铁集团), the nation’s largest steelmaker, yesterday raised domestic prices across the board for next month on the back of robust seasonal demand and inventory restocking by downstream clients.
The Kaohsiung-based company raised prices by NT$1,000 to NT$1,200 per tonne, its fifth consecutive monthly increase.
The move came as the World Steel Association on Tuesday reported that global steel demand is expected to grow 0.3 percent this year to 1.724 billion tonnes and increase 2.2 percent next year to 1.762 billion tonnes, signaling a recovery in the industry.
While market fundamentals are improving and momentum in the steel market is picking up, China Steel said that tensions in the Middle East have boosted global crude oil prices to about US$100 per barrel, driving up shipping and raw material costs, with iron ore at US$100 to US$110 per tonne and coking coal at US$230 to US$240 per tonne.
As raw material and energy costs for steelmaking continue to rise, major global steelmakers have raised prices.