Taiwan's top steel maker, China Steel, announced that it will introduce a rise in its domestic product prices by 8.6 percent in October-November from September, amidst recovery of demand from the global economic meltdown.
It was after the firm's biggest increase in a year in September that the rise came; and it was roughly in line with market expectations of an 8 percent rise.
As per some of the analysts, the prices could be hiked further by China Steel, since re-stocking demand by competitors in Europe and the United States outweighed the Chinese rival's expected price cuts.
An analyst at First Global Securities Investment Trust said: "Globally, the pressure of an industry-wide inventory correction will not be huge. We are positive about the sector's outlook throughout the first half of next year."
A number of big Chinese steel mills scrapped their produce prices for September sales by up to 19 percent from their August levels, in the beginning of this week, as spot prices continued to fall on weak demand, specified industry consultancy Umetal.
It continued, "The price cuts come as Chinese spot steel prices languish amid concerns that tighter bank lending, the government's crackdown on overcapacity in the steel industry and record output, may end the months-long price rally."
Before this, China Steel hiked its products by 9.4 percent for September, its biggest increase in a year
Source: Top News, Singapore
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