(Central News Agency reporter Lai Yanxi, Taipei, December 14, 2023) Sinosteel (2002) said today that the cost of steelmaking raw materials has continued to rise recently and international steel prices have risen. Therefore, it has decided to increase the domestic sales price by NT$500 per ton in January next year. to 700 yuan, and the domestic sales price in the first quarter increased by 500 yuan to 800 yuan per ton.
Sinosteel today announced the domestic sales price for January next year, including hot-rolled steel plates, hot-rolled steel coils, cold-rolled steel coils, electro-galvanized steel coils (anti-fingerprint, building materials), hot-dip galvanized steel coils (home appliances, computers, others Materials), electromagnetic steel coils (medium-low gauge, high gauge) will increase by 500 yuan per ton, hot-rolled steel coils (rolled materials) and hot-dip galvanized steel coils (building materials, baking paint materials) will increase by 700 yuan per ton .
In the domestic sales price section of the first quarter of next year, hot-rolled steel plates and steel coils, cold-rolled steel coils (medium and high carbon, tool steel), cold-rolled steel coils (barrel making) and automobile materials will increase by 500 yuan per ton, while bars, wires and steel plates will increase by 500 yuan per ton. The price increased by 800 yuan per ton.
Observing steel demand, Sinosteel said that the Japanese government introduced a 17 trillion yen bill to reduce the impact of inflation, boost the economy and stimulate consumption through corporate tax cuts and raise wages; China continued to expand its efforts to stabilize the housing market and issued an additional 1 trillion yen. Yuan treasury bonds are invested in infrastructure, which is expected to support steel demand.
In addition, global automobile production and sales are booming this year. The JD Power report predicts that global automobile production is expected to grow to 90.2 million units in 2024, an increase of about 4% from 2023. In October this year, the World Steel Association (Worldsteel) revised the global steel production in 2024. The demand growth rate has reached 1.9%, and it is estimated that demand will increase by nearly 34.6 million tons compared with 2023, indicating that the bottom of the global steel market has passed.
In terms of supply, Sinosteel believes that the National Bureau of Statistics of China announced that crude steel production in October this year was 79.09 million tons, which was 13% lower than the previous peak of 91.11 million tons in June. The social inventory of steel has declined since the peak of 12.21 million tons in mid-August. By the end of November, it was 8.88 million tons, a decrease of 27%, with both output and inventory declining significantly.
U.S. steel mills cut production due to the previous strike at car plants, resulting in insufficient supply after the resumption of automobile production lines. U.S. steel mills’ plate delivery period was extended from 4 to 6 weeks to 8 to 12 weeks; the effect of European steel mills’ production cuts was fermented, driving the momentum to increase shipments. Passed to the Asian supply chain; Worldsteel statistics show that global crude steel production in October this year was 150 million tons, declining for eight consecutive months, indicating that global steel supply has been controlled.
In terms of raw materials, Sinosteel pointed out that the price of iron ore has climbed to US$135 to US$140 per ton, a new high this year. Metallurgical coal prices have continued to rise due to China’s mining disaster safety inspections, poor production in Australia, and strong market demand in India. Currently, per ton About US$330 to US$340, and bulk shipping has benefited from strong demand for raw materials, freight rates have increased, and the increased transportation costs have also helped steel prices rise.
Sinosteel believes that as U.S. steel mills have raised prices continuously since October, European steel mills have once again launched a new wave of plate price increases in December. China’s Baowu Steel and Anbenxi Steel have also opened at flat prices for seven consecutive months. , driving Asian steel prices to rebound from the bottom, and the global steel price increase has been established.
2023-12-14 09:48:15
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