Steel Market Demand Recovers, China Steel and Chung Hung Continue to Raise June Prices

TAIPEI (CNA) – Due to the recovery of the international steel market, rising raw material and energy costs, and supply tightening caused by geopolitical risks in the Middle East, China Steel Corporation (CSC) and single-roll mill Chung Hung Steel today announced a comprehensive price increase for June. CSC raised prices by NT$500 to NT$1200 per metric ton, while Chung Hung raised prices by NT$1200 to NT$1500 per metric ton.

Observing CSC's June monthly steel products, hot-rolled steel plates and coils (general material), hot-rolled steel coils (rolling material), and cold-rolled steel coils (general material) all increased by NT$1200 per metric ton; electro-galvanized steel coils (anti-fingerprint, construction materials) and hot-dip galvanized steel coils (home appliances, computers, other materials) both increased by NT$1000 per metric ton; hot-dip galvanized steel coils (construction materials, pre-painted material) increased by NT$1200 per metric ton; and electromagnetic steel coils (mid-low grade, high grade) increased by NT$500 per metric ton.

CSC stated in a press release today that the international steel market is recovering, coupled with increased demand during the traditional peak season in the second quarter, leading downstream operators to actively replenish inventory. Meanwhile, the US-Iran conflict has pushed up crude oil, shipping, energy, and alloy prices, driving up overall steelmaking costs.

In addition, reduced steel and semi-finished product exports from the Middle East have led to tighter steel supply. Driven by the triple factors of increased demand, cost push, and supply tightening, the upward trend in steel prices is clear.

Nucor, the largest steel manufacturer in the United States, has continuously raised hot-rolled steel prices for 16 consecutive weeks, with local hot-rolled ex-factory prices exceeding US$1170 per metric ton, a two-year high. New restrictions on imports due to European defense measures have tightened supply, keeping local steel prices at a high level.

In Asia, Vietnam's Hoa Phat and Formosa Ha Tinh Steel have successively raised new hot-rolled prices by US$50 to US$58 per metric ton, and China's leading steel mill Baosteel has also continued its price increases. Domestic downstream steel product circulation prices have steadily risen, with imported hot and cold rolled quotations accumulating an increase of US$80 to US$90 per metric ton in the past month, indicating a steady upward trend in steel prices.

Chung Hung today announced its June domestic sales and July export prices. For domestic sales, hot-rolled and cold-rolled steel increased by NT$1200 per metric ton, and galvanized steel increased by NT$1500 per metric ton. For exports, prices will be adjusted based on products and regions, with actual quotations depending on local market conditions.

Chung Hung pointed out that overall, current geopolitical risks have driven up energy and shipping costs, raw material prices such as coal and iron remain high, and benchmark steel mills continue to raise prices. The strong support for steel prices remains. To reflect the current steel market situation and boost market confidence, both domestic and export prices were adjusted upwards accordingly. (Edited by: Huang Kuo-lun) 1150512

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