CSC raises export prices of steel slated for delivery in Q2

Taipei, April 11, 2005 (CENS)--At the end of March China Steel Corporation (CSC), Taiwan's largest steelmaker, recently announced it would raise wholesale export prices of steel to be shipped in the second quarter of this year by an average of 7%, at a meeting with domestic downstream exporters.

The items subject to the export price hikes include cold- and hot-rolled steel products, steel bars and wire rods, steel plates, electro-galvanized sheets, electrical sheets, hot-dip galvanized steel coils, which saw a price hike of between US$30 and US$70 per metric ton.

The export prices of cold-rolled, hot-dip galvanized steel coil, electro-galvanized sheet, and electrical sheet were hiked by 7.6% up to 8.9% because of the suppluy shortfall caused by the increased demand from the mainland China and Japan.

CSC said the demand for automobile steel body parts as well as industrial and automotive motors is increasing because of the prosperous development of the mainland and Japanese automotive and home-appliance markets.

In terms of respective export outlets, Japan and mainland China saw the highest price hikes, followed by Southeast Asia.

According to a study report issued by CSC's market research unit, demand for coated steel this year will be as pressing as last year because of the fast growth of the automotive and home-appliance industries in Japan and mainland China. The study result showed Japan output 10.7 million automobiles and mainland five million-strong, last year.

With the price adjustment, the export prices of CSC's electrical sheets and hot-dip galvanized steel coil are set at US$850 and US$840 per metric ton, respectively.

At present, CSC exports 600,000 metric tons of steel products quarterly, mainly to Asian market. Of this, coated steel products account for 120,000 metric tons. Japan and mainland China absorbed 70% of CSC's total exports and Southeast Asia the remaining 30%.

Export-Price Changes for CSC Steel Products Unit: US$/ per metric ton
Products	Q1	Q2	Average Hikes
Steel Plates	630	670	6.3%
Steel Bars & Wire Rods	590	625	5.9%
Hot-Rolled Steel	600	650	8.3%
Cold-Rolled Steel	690	740	7.2%
Electro-Galvanized Sheets	830	880	6%
Electrical Sheets	780	850	8.9%
Hot-Dip Galvanized Steel Coils	780	840	7.6%
Source: China Steel Corp.