CHINA STEEL CORPORATION On October 23, China Steel Corporation (CSC) held domestic price meeting for December shipment and announced the following statement:
Manufacturing industry in US declined due to lower than expected global economic growth. Also, the strong dollar caused poor US export. Economic index in Q3 is not so good as in Q2. However, consumer spending and real estate sales performed well, overall economic momentum remains stable.
In the Euro zone, although some uncertain factors, such as VW emissions scandal and refugee problem, may hit European automotive industry and affect EU economy, benefited from monetary easing policy, weak euro, decline in oil and commodity price, economic recovery in EU is expected to remain.
In China, due to export fall and depressed investment, economic growth in Q3 dropped below 7%. Market expects a further cut of interest rate by Chinese government to stimulate the sluggish economy.
In Taiwan, affected by the stagnant global trade, production and export performed weak. According to the Directorate General of Budget, Accounting and Statistics (DGBAS) economic growth rate this year is 1.56%, and next year will rebound to 2.7%.
Global economic growth slowed down. Conventional high season for steel-related industry in Q4 has yet to appear. Weak demand in the US steel market and decline in steel price forced some of the mills to reduce production.
Demand in Europe's steel market remains stable, but cheap steel imports have caused the downward pressure on steel price and oversupply in its domestic market.
As for steel market in Asia, facing sluggish demand among downstream users, Chinese mills had to slash price to maintain export orders. However, countered by trade barriers in US and Europe market, Chinese mills still face massive pressure of oversupply. Nevertheless, Chinese government carried out several investment stimulus policies, demand is expected to recover. Besides, a majority of Chinese steel mills have kept their prices unchanged for price offer in November. This means the market is becoming stable, and is close to bottoming out.
Though World Steel Association forecasted that the global steel demand will decline by 1.7% this year, it is expected to grow by 0.7% next year. Along with expanding financial losses in major mills, cutback of production should be continued, which might ease the oversupply pressure, and gain some momentum to the steel market. Therefore, China Steel Corporation (CSC) has decided to roll over their prices for December shipments.
Prices Announcement for 2015 December Domestic Sales| Products | Adjusting Amount (NT$/MT) |
| Plates | 0 |
| Bars and Rods | 0 |
| HRC | 0 |
| CRC | 0 |
| EG | 0 |
| ES | 0 |
| GI | 0 |
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