OREANDA-NEWS. November 01, 2011. China Steel Corporation (CSC) held the domestic pricing meeting for 2011 December shipments and announced the following statement: European debt crisis still haunts, casting doubt on global economy, and forcing IMF to lower its global economy growth forecasts for 2011 and 2012. The uncertain risk flooded global market, and steel buyers preferred maintaining low inventory level. Global steel demand fell short in traditional high season, while the over-supply market put huge pressure on steel mills, reported the press-centre of CSC.

Due to growing import and production volume and unexpected weak demand in the US, the recent steel price surge was curbed. The HRC prices increased by USD 66/MT in August in response to surging costs, but the attempt to raise another USD 44/MT in September failed. China’s tight monetary and fiscal policy stalled demand growth. Since Chinese steel market went soft, inventory level rose. Coil centers, in order to lower cost of capital, solicited orders by cutting prices. However, the overall price level almost reached break-even points for manufacturers, and the demand for restocking may be looming.

European debt crisis cast negative influence on Taiwan steel downstream users, leading to an unfavorable export condition in November. Considering that the global economic conditions are still unclear, and buyers are hesitant to place orders, CSC has decided to reduce steel product prices slightly by an average of 0.17%, or NT\\$43/MT for December sales to enhance market confidence.