Announcement for Domestic Steel Prices for the First Quarter /January Shipments of 2025

2024-12-20

[December 19th, 2024], China Steel Corporation (CSC) hereby announces following statement, regarding the forecast and sales price adjustment for the First-quarter/January shipment of 2025.

Macro economy
Inflationary pressures in Europe and the United States are easing, gradually paving the way for a rate-cutting cycle. This shift will mitigate the restrictive effects of high interest rates on economic activity, supporting steady global economic growth. The OECD has revised its 2025 global economic growth forecast upward by 0.1% to 3.3% compared to its September projection. Taiwan's recent economic performance remains robust, with exports continuing to expand, driven by emerging technologies and the AI wave. This growth is bolstering domestic demand and investment activities, with stable upward momentum in consumption. Taiwan's Directorate-General of Budget, Accounting, and Statistics (DGBAS) projects a 3.29% GDP growth rate for 2025.

Steel Demand
In Taiwan, the industrial production index recorded positive growth for eight consecutive months as of October, spurring demand for industrial facilities, machinery, and servers. Despite challenges in Europe’s automotive industry, steel demand remains supported by the European Central Bank's rate cuts and a rebound in consumer spending. China's National Bureau of Statistics reported a 0.2-point increase in the November Manufacturing PMI, reaching 50.3 and remaining in expansion territory for two consecutive months. China plans to strengthen policy coordination in monetary, fiscal, and employment sectors to boost consumption and domestic demand in 2025. The World Steel Association (worldsteel) forecasts global steel demand will grow by 20.6 million metric tons in 2025 to 1.7715 billion metric tons, a 1.2% increase, marking a recovery from the past two years of decline, signaling a potential recovery ahead.

Steel Supply
According to the World Steel Association (worldsteel), global crude steel production in October this year increased by 1% year-on-year, reaching 152.1 million tons. In mainland China, cumulative crude steel production from January to November totaled 929 million tons, a year-on-year decrease of 2.7%. Additionally, data from the China Iron and Steel Association (CISA) shows that as of early December, social inventory of steel dropped to 7.761 million tons, representing significant month-on-month and year-on-year decreases of 5.4% and 11.8%, respectively, marking the lowest level since 2020. The inventory levels are at historic lows, indicating a relatively tightened supply side.

Raw Materials and Operating Costs
Raw material prices have been supported by China's economic stimulus policies, with iron ore and coking coal prices remaining steady at $100~110 per ton and $200~210 per ton respectively. The stable steelmaking costs provide a certain support to steel prices.
In terms of steel market prices, the upcoming year-end holidays in Europe and the U.S. is leading to subdued demand and constant steel prices. In contrast, China’s steel market is stimulated by economic and monetary policies, driving up its hot-rolled futures and spot prices, and also the export quotations. Chinese major steelmakers such as Baowu and Anshan-Benxi have announced stead-to-higher prices for flat steel products of January shipment, reflecting a robust support for steel prices in Asia.
Next year marks the introduction of carbon fees in Taiwan, ushering in a new era. Reducing carbon emissions and implementing carbon footprint verification will be critical for the steel industry to enhance competitiveness. CSC will work closely with downstream steel users to navigate the carbon pricing era together.

Resolution
The global economy remains steady, and the international steel market is gradually recovering. However, the Lunar New Year holidays shall arrive in first quarter of every year as a traditional off-season for steel industries. Additionally, participants are largely in a wait-and-see mode regarding the direction of the U.S. President Trump’s new policies, while the effects of China’s stimulus package will also take time to materialize, thus the steel market should remain in an adjustment phase in short term.
To stabilize downstream customers' material costs, CSC will continue to adopt a "flexible and steady" pricing approach. Our pricing for the products of January and first-quarter shipments in the next year will remain flat. Meanwhile, CSC will provide diverse solutions to assist customers in securing orders based on the varying needs and competitive situations of different downstream industries.

CSC hereby announces the domestic sales price adjustments for the First-quarter and January shipments of 2025 are listed below：

Offer Basis	Products	Average Adjusted Amounts (NTD/MT)
January shipment	HR Plate	+0
	HR	+0
	CR	+0
	EG	+0
	GI (Construction)	+0
	GI (Appliances)	+0
	ES	+0
Offer Basis	Products	Average Adjusted Amounts (NTD/MT)
First-quarter shipment	Bar and wire rod	+0
	Plate(A36/SS400 and SM570 series)	+0
	Plate(ship plate and others)	+0
	HR (Medium-High Carbon, Tooling)	+0
	CR (Medium-High Carbon, Tooling and Drum)	+0
	Automotive usage	+0

Information Origin : http://www.csc.com.tw/CS/CSC_E/NC/neli/neli.aspx

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