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
"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.