CSC to Raise Wholesale Export Prices by Record 30% in Q2

Taipei, March 14, 2008 (CENS)--After jacking up by 19% wholesale domestic prices in first quarter of this year, China Steel Corporation (CSC), Taiwan's largest integrated producer of steel products, will raise export prices by between 25% and 30% in the second quarter, setting historical record highs for overall price hikes.

The average export price for cold- and hot-rolled steel coils, steel plates and wire rods for delivery in the first quarter is lagging behind the international price by US$140 up to US$200 per metric ton. Besides, such large-sized competitors as New Nippon Steel and JFE have recently raised export prices by between US$200 and US$250 per metric ton, which has pushed CSC to follow suit.

It is anticipated the South Korea's largest steel producer POSCO will soon hike its export prices on products for delivery in the second quarter by between US$150 and US$200 per metric ton.

T.H. Chen, vice president of CSC's Commercial division, noted his company is still collecting information on the development trend of the international steel marketplace as reference for settling export prices on the products for delivery in the second quarter. Pushed by the sharp surge in such raw material as iron ore, CSC is expected to largely hike export prices on the products for delivery in the second quarter.

CSC said it would increase supply of hot-rolled steel coils, steel plates and wire rods to domestic market by cutting overseas sales because of the production shortfall. But the company will maintain the export amount for such products as cold-rolled steel coils, electro-galvanized sheets, electrical sheets, and hot-dip galvanized steel coils.

In the past, the CSC exported 25% of annual output of 10 million metric tons of steel products to such major outlets as mainland China, Hong Kong, Japan and Southeast Asia. But the export rate has been on the wane over the past few months to meet the increased demand of domestic market.

It is anticipated that CSC would drastically raise export prices by between 25% and 30%, or between US$150 and US$200 per metric ton, when it calls an export wholesale meeting by the end of March.