China Steel will keep most of its steel prices unchanged for July and August delivery despite the soft market.
Taiwan’s largest steelmaker previously kept its June price unchanged and raised prices by 1.1% on average for April and May deliveries.
“Steel prices will rebound in the third quarter [of 2012] as economy growth is expected to improve in the second half of the year,” a China Steel official said.
Both the USA and China are trying to support economic growth through releasing liquidity and projects intended to stimulate industry, he added.
Under such circumstances, sector participants will expect steel mills to want to shore up the market by keeping prices at previous levels, a local trader in Taiwan said.
On average, mills will keep prices for hot rolled coil at NT$21,177 ($715) per tonne, China Steel said.
China Steel subsidiary Chung Hung Steel will announce its list prices early next week. Most market participants, especially pipe makers, have requested a decrease in prices.