Q4 Steel Prices May Climb Due to Insufficient and Tightened Steel Supply
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After Taiwan’s China Steel Corp. (Taiwan CSC) adjusted the Q3 prices of its steel products by 4.1% on average, many industry analysts forecast that its Q4 prices may continue to follow the growing trend in the international market. Such a forecast is based on the reasons like: Russia announced a 3-month long and more than 15% provisional export taxes on metals including steel, aluminum, nickel, and copper; Chinese Government imposed certain measures to restrict exports of steel products; the reduction in steel manufacturing of Indian steel plants will continue through this September; many major steel plants in China, S. Korea, and Asia have announced plans for annual repairs or a temporary halt of production. All of these factors will surely lead to a more tightened steel supply in the global market already suffering insufficient steel supply.
Considering the continuously growing market demand and in order to reduce the possible impacts on the supply to downstream manufacturers, Taiwan CSC has announced to postpone its annual repairs schedule to April 2022 (though small-scale annual repairs will still be carried out). In addition, as the current steel prices by Taiwan CSC remain comparatively lower than the general int’l market prices, some market analysts forecast that the steel prices of Taiwan CSC are very likely to appear another wave of price increase in the upcoming August.