Taiwan’s largest steelmaker China Steel Corporation (CSC) has stated that it expects global steel demand to increase amid infrastructure construction around the world. Global steel demand in 2021 remains at a high level. The market saw a correction during the traditional low season in the third quarter, and remains cautiously optimistic in the fourth quarter.
“The steel demand is affected by the supply chain bottleneck driven by port congestion and the chip shortage this year. The shipping capacity and supply of key components is expected to be improved, boosting the steel consumption outlook,” CSC said.
CSC stated that there is no need to be pessimistic about the future market as demand remains steady. Considering that the downstream steel demand is becoming steady with the implementation of infrastructure plans, especially in the US, and that prices of raw material remain at a high level, steel prices are expected to be supported.
Meanwhile, CSC completed the revamping of blast furnace No. 2 in advance at the end of 2020 and took advantage of a wave of strong demand. The company operated at full capacity amid strong market demand in the first and second quarters. The company’s sales volume in the third quarter declined slightly, due to the rainy season and the delay of export shipping schedules.
Regarding iron ore prices, the company stated that the prices increased in the first half this year, while they started to decline in the third quarter. In the fourth quarter this year, the coking coal price soared to new highs, which offset the decline of iron ore prices.
“Iron ore prices shot up by more than 20 percent in the past three days, back to $99.45/mt, and prices will likely stay above $100/mt, while coking coal prices remain high at $317/mt. Both commodities will lend strong support to steel prices,” Hwang Chien-chih, CSC executive vice president, said.