OREANDA-NEWS. September 07, 2011. China Steel Corporation (CSC) held the domestic pricing meeting for 2011 October and November shipments and announced the following statement: Europe and US debt crises have caused industrialized countries’ economic growth to slow down. Moreover, the 3rd quarter is a low season for steel market. Pressures of inventory adjustment had made the price dropping faster. Some steel mills started to reduce production and utilize the spare time for maintenance. However, as the 4th quarter high season is coming, global steel mills gradually increase the steel prices. HRC export price has already bounced back by USD 20-30/MT after hitting bottom, reported the press-centre of China Steel Corporation.

Because of high-level inventory, Europe and US steel prices have plunged since 2nd quarter. However, as price is close to cost, not only major steel mills, such as US Steel, AK Steel and ArcelorMittal announced to increase the HRC price by USD 66/MT in early August, other Europe mills also planned to increase price by USD 29-43 after summer holiday season. Although China’s monetary-tightening policy and low season have made demand decreased in the last season, the electricity restriction policy, cost pressure, and coming high season also drove China steel mills to increase September price.

Even though CSC’s raw material costs still remain at high level, in order to maintain the competitiveness of customers, CSC has decided to raise the price slightly by average 1%, NT\\$243/MT for October and November sales while domestic market price and export price of downstream rerollers have already been raised gradually.