In spite of weak downstream demand and lower prices from Vietnam’s Formosa Ha Tinh Steel, Taiwan’s China Steel Corporation (CSC) is expected to raise its third-quarter rod and wire prices by NT$1,000 to NT$1,500 per ton. Rising coke costs, higher summer electricity rates, and high freight charges outweigh the impact of falling iron ore prices and a stronger New Taiwan Dollar.
At the same time, local wire rod transactions are still subdued as buyers await CSC’s official announcement, which has been moved up to June 12 from the previous scheduled June 18. This release sets both July and third-quarter product pricing, of which bar and wire rod prices are for the third quarter.
Though Chinese domestic and export wire prices dropped recently due to seasonal factors, they still surpass last quarter’s levels. Baosteel and Ansteel also increased their wire rod prices for June.
Consequently, cost pressures on CSC continue, making this upcoming hike its second consecutive quarterly price adjustment.