CSC to Raise Wholesale Steel Prices by 10% in Q3

Taipei, May 21, 2008 (CENS)--China Steel Corporation (CSC), Taiwan's largest integrated steel mill, plans to raise wholesale prices by 10%, or US$100 per metric ton, for products to be shipped in the third quarter of this year.

The expected price hike is driven by the anticipated increase in demand for steel products in the wake of a massive 7.9-magnitude earthquake in Sichuan Province of mainland China on May 12. In addition, the steel mills around the capital Beijing have cut production to cope with the needs generated by the upcoming 2008 Beijing Olympic Games.

A domestic manufacturer of stainless steel noted the serious earthquake in Sichuan Province would help boost the demand for steel due to inevitable needs to rebuild buildings and bridges that have collapsed en masse.

CSC vice president T.H. Chen noted an upward trend in steel prices as the mainland has cut supply while increasing demand.

An industry insider said mainland China's largest steelmaker-BaoSteel Corporation would continue to hike prices for products to be shipped in the third quarter of this year. In the second quarter of this year, BaoSteel raised prices for cold- and hot-rolled steel products by between 1,100 and 1,200 renminbi (US$157.36 and US$171.67 at US$1:N$6.99) per metric ton. During the same quarter, CSC raised the wholesale prices for hot- and cold-rolled steel products by an average of NT$4,000 (US$129.87 at US$1:NT$30.8) per metric ton.

The steel sector expects that the Sichuan earthquake will fuel strong demand for steel products as round bars, H-beams, plates, hot-rolled steel coils, galvanized coils, coated plates, and stainless steel plates.