BEIJING: China Steel Corp, the nation’s only integrated steelmaker, yesterday said it would lower prices by 1.3 percent per tonne on average for October and November shipments in response to a US anti-dumping tax on steel products made in Taiwan.
“We hope to help enhance the price competitiveness of downstream companies in the local industry by cutting prices,” said Chiu Shuenn-der, a China Steel assistant vice president for its commercial division.
Chiu said local companies that ship corrosion-resistant steel products to the US are under immense pressure from the anti-dumping tax.
Last month, the US government raised an anti-dumping tariff on five Taiwanese companies, including Yieh Phui Enterprise Co, Prosperity Tieh Enterprise Co and Synn Industrial Co, from 3.77 percent to 10.34 percent.
The tax resulted in an additional cost of US$60 per tonne on average, Chiu said.
However, Chiu said a downward trend in prices for hot-dipped zinc-galvanized products in Japan was also a factor in China Steel’s latest price adjustment.
Under its adjustment plans, China Steel is to lower the price of its products by NT$235 per tonne for October and November contracts.
Hot-rolled sheets and coils, the company’s major products, are to see prices drop by NT$586 per tonne, while cold-rolled sheets and coils will see prices decrease by NT$163 per tonne. The price of hot-dipped zinc-galvanized products will be cut by NT$65 per tonne, the company said.
China Steel said it is positive about the outlook for the industry for the rest of the year in the wake of China’s efforts to reduce its production capacity.
This year Beijing has launched reforms to solve oversupply problems in the country’s major industrial sectors, including reducing steel production by 45 million tonnes and coal output by 280 million tonnes.
Chiu said that these reforms have seen effectiveness in the third quarter, helping to reduce inventories and raise prices.
“We would consider raising the price of hot-rolled sheets and coils if prices in China continue this upward trend,” he said.
