Supported by improving demand, CSC also revised upward its shipment target for this quarter by about 17 percent to 3.15 million tonnes from a previous estimate of 2.7 million tonnes, CSC vice president Liu Jih-gang (劉季剛) said by telephone.
“In Taiwan, we also feel customers’ demand coming back for inventory buildup. Customers are gradually regaining confidence [in a recovery in end demand.] This should be a sign of the industry bottoming out [later this month],” Liu said.
The company saw improving demand for screws and nuts used in electronics, as well as for steel bars, Liu said.
Demand for grilled plated steel bounced back after Taiwanese firms benefited from a favorable anti-dumping ruling.
“In addition, we are matching the global upward price trend in the steel market. The industry is rebounding from a dip last year,” Liu said.
In the US and Europe, steel prices rose from US$30 per tonne to US$70 per tonne as inventory has fallen to an extremely low level after global steelmakers cut production to cope with sluggish demand and sharp price declines, CSC said in a statement.
In China, steel prices have soared by 200 yuan (US$30.41) per tonne to 500 yuan per tonne after Beijing pledged to force Chinese steelmakers to cut output, CSC said.
CSC’s price hikes are in line with the expectations of First Capital Management Inc (第一證券投顧).
The investment consultancy on Tuesday said that CSC would take its cue from Chinese rivals in raising steel prices.
China’s Baoshan Iron & Steel Group Co (寶鋼) increased prices for major steel products to be delivered next month by between 60 yuan and 200 yuan per tonne and it continued to raise prices for most products to be delivered in March, the investment consultancy said.
First Capital Management said that CSC would make NT$27.25 billion (US$805.59 million) in revenue this year, or earnings per share of NT$0.21, down 4.77 percent from a year earlier.
CSC increased prices by NT$300 per tonne for its steel plates, hot-rolled sheets and cold-rolled sheets, the statement said.
It increased the price of its hot-dip galvanized and galvanic sheets by NT$600 per tonne, it said.
