The recovery of real estate market leads the economy in US to maintain steady growth. Europe and Japan implement certain stimulus policies, such as negative interest rates and quantitative easing, trying to stabilize confidence in financial sector. In China, the “Two Meetings” held by Chinese government released good news, private investment and fixed capital expenditure have increased, and the housing market gets strong momentum to grow as well. Benefitted by weak dollar and reflux of money, the economic pressure in emerging Markets has been relieved.
The rebound in raw material prices, such as crude oil, since the end of last year eased global economic risks, so the market anticipates the FED will cautiously raise interest rate, stabilizing international financial market. Although IMF revised global GDP growth rate again this year, down to 3.2%, it’s still 0.1% higher than last year. With international economic environment turning better, domestic economy is expected to regain growth in Q2.
The Chinese government strengthens the reform on supply side to sustain cut in steel production, keeping inventory at relatively low level, and improving global over-supply situation. The sharp rebound of prices in iron ore and steel scrap also helps stimulate the overall international steel prices. Since March, steel price in Europe and US have been continuously rising by more than USD$100/MT, while domestic steel price in China has also been surging drastically by RMB700~1,000/MT, and cumulative price increase in Q1 has exceeded 30%. Mills in each country raised its export price offer one after another, bringing prosperity to international steel market.
With international steel price rising substantially, domestic industries actively replenish inventory in advance, stimulating price to go high as well as recovering growth in downstream export orders, and atmosphere turns optimistic in steel market. Considering domestic and global situations, to properly reflect steel market circumstances, and also to keep the competitiveness of downstream industries, China Steel Corporation (CSC) has decided to raise prices for June shipments by NTD 1,483 /MT in average, that is 10.5%.
|Prices Adjustment for 2016 June Domestic Sales|
|Products||Adjusting Amounts (NT$/MT)|