2023-06-19 11:10:31
(Central News Agency reporter Pan Zhiyi, Taipei, June 19, 2023) Sinosteel Corporation (2002) said today that the recovery of the international steel market in the second quarter was not as expected, and steel prices were out of order and oversold. Considering the loss of downstream customers’ inventory and increasing competition for customer orders In order to reduce the price in July and the third quarter, respond to the expectations of downstream customers and keep in line with the market conditions.
Sinosteel held a steel product price meeting today, and decided to lower the product price in July by NT$1,000 to NT$1,500, and in the third quarter by NT$1,500 to NT$2,000.
Sinosteel issued a press release pointing out that the price in July responded to the expectations of downstream customers and was in line with market conditions; the price in the third quarter reflected the market changes in the last three months, and took into account the differences between the opening time of quarterly products and the structure of downstream industries , to be adjusted appropriately.
Sinosteel expects that steel prices will bottom out and rebound in July, and demand will turn from the bottom to recovery. It is hoped that the downstream will seize the opportunity to replenish inventory at low steel prices, reserve the kinetic energy for future orders, and welcome the steel market’s upward prosperity. Therefore, Lowered the price in July and the third quarter.
Sinosteel explained that although the global economy in the first half of the year was dragged down by the U.S. interest rate hike, the Russia-Ukraine war, and China’s sluggish recovery, and the terminal demand was weak, economic analysis agencies are mostly optimistic regarding the market outlook, believing that the second half of the year will be better than the first half of the year. Slowing, inflation cooling, the economy is improving, the World Bank and the Organization for Economic Co-operation and Development (OECD) released the latest global economic outlook in June, respectively revised up the economic growth rate estimates for this year to 2.1% and 2.7%.
Sinosteel stated that steel demand ushered in urgent orders in the first quarter, but China’s recovery following unblocking was insufficient, steel demand might not be sustained, the momentum of European and American manufacturing industries slowed down, and the Purchasing Managers Index (PMI) was weak. It will accelerate the issuance of bonds to promote infrastructure construction, further loosen the real estate policy, and bring the economic locomotive back on track, which is expected to greatly boost the demand for steel.
Sales of automobiles and motorcycles in Taiwan are outstanding. Artificial intelligence (AI) and high-performance computing drive the growth of computers and servers, stimulating the use of housing materials. The government released a public construction budget of NT$680 billion, which will help steel demand return in the second half of the year.
The World Steel Association predicts that the growth rate of global steel demand this year will reach 2.3% to 1.822 billion tons, an increase of regarding 40.8 million metric tons compared with last year, maintaining the growth trend.
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