China Steel increases wire rod prices
Taiwan’s state owned steel giant, China Steel Corporation, announced domestic steel price increases averaging 12.1% effective for April/May shipments.
aking the announcement China Steel referred to the upward revision of the IMF’s 2011 global GDP growth projections to 4.4%. It also noted that the World Steel Association now estimated worldwide apparent steel
use would grow 5.3% to reach a record 1.34 billion metric tonnes this year. Looking specifically at raw material supply conditions China
Steel said: “Affected by flood crisis in Australia and natural disasters in Brazil, global coking coal and iron ore prices continued to pick up, causing steel mills production cost to increase over US$150 per tonne. To avoid losses, steel mills over the world were forced to raise steel prices.” The Group said it had faced “tremendous pressure from
the increasing raw material prices in the first quarter” but appreciation of the New Taiwan Dollar had meant that average domestic selling prices had dropped below international prices. However, it said, “due to recent NT$ depreciation and escalating international steel prices, most downstream industries had
enjoyed increased orders and product prices”. As a result it concluded, “to avoid operational losses, CSC
had no choice but to reflect the increase in raw material cost and raise the weighted average prices of steel products by NT$2,811/MT (+12.1%).” The actual increase on bars and rod will be NT$2,500 per
tonne (equating to US$85 or around 62 euros) slightly below the majority of other steel grades. Feng Hsin announced it was adding NT$1,000 to its wire rod prices, which Fastener World reports is similar to increases applied by Dragon Steel, Yieg Hsing and Quintain Steel, and brings the mill price to around NT$25,900 (approximately US$880 or 640 euros). Year to date Feng Hsin has increased by slightly over 5% but Fastener World expects it will catch up with the China Steel level. In Mainland China major steel producers including BaoSteel
and Wuhan were reported by Chinafastener.info to have increased March general steel levels by around US$45 per tonne based on raw material cost increases.
Taiwan fastener output up 61% in last three quarters 2010
In a February interview with Taiwan Economic News Taiwan Industrial Fastener Institute chairman, Joe Chen, confirmed that Taiwan’s fastener output for the last three quarters of 2010 was worth NT$83.4 billion (over 2 billion euros) up 61% on the same period in 2009.
roduction volume totalled more than 940,000 metric tonnes. Exports accounted for NT$75 billion (approximately 1.85 billion euros) of the total output and were up 55% year on year. Output for the full year was expected to reach between 1.1 and 1.2 million metric tonnes with a value of more than NT$110 billion according to a report from Taiwan’s Metal Industries Research and Development Centre.
In the interview, available at www.cens.com, Chen says that he encountered considerable opposition when planning last year’s
Kaohsiung Fastener Show notably from co-organisers over the limited size of the venue at the Kaohsiung Arena and its distance from Taipei, which was seen as inconvenient to international participants. TIFI’s main partner was TAITRA, Taiwan’s external trade development council. Chen insisted on the show being staged in Kaohsiung, a position he considers validated by the international buyer attendance and the numbers that took advantage of visiting nearby factories during their trip. A breakdown of the visitor numbers suggests that of the 17,000 visitors around 1,400 buyers were from the US, Europe, Japan, Korea, Russia and the Middle East. Chen told CENS that TIFI planned to hold the show at the same venue every two years but then went onto say the next show could be in 2012 or 2013 in late March.
Rodex sales rise 59% YOY in January
Rodex Fasteners told the Taiwan Stock Exchange that its unconsolidated sales in January rose 59.71% to NT$206 million (5.1 million euros). Bloomburg reports full year 2010 sales at NT$2.6 billion (63.6 million euros) up 66% year-on-year.
Fastener + Fixing Magazine • Issue 68 March 2011