China Steel Announces Double-Digit Price Hikes
China Steel Announces Double-Digit Price Hikes
Jason Sandefur
In a clear sign that fastener prices are rising, Taiwan’s China Steel Corp. announced an average 19% price increase for the second quarter.
The hikes include a 20% increase on low-alloy steel (1035/1045); a 22% increase on low carbon steel (1018); and a 25% increase on medium and high carbon steel (1045), according to Bruce Darling, vice president of materials for Porteous Fastener Co.
The hikes follow news in late February that Bao Steel in China would increase prices 20% as raw material costs surge. The hike was much higher than the expected 7% to 15% jump in price.
“Both are large and very significant,” Darling told FastenerNews.com.
Chinese fastener suppliers have voided pending quotes to customers in the wake of the dramatic steel increases.
Darling has said that smaller independent steel suppliers are changing their prices “every week.”
The steel price increases follow an agreement by major Asian steelmakers to a 65% increase for iron ore from Brazilian miner Vale effective April 1, 2008.
Prices of fasteners from China and Taiwan skyrocketed during 2007, prompting importers to predict prices would continue to escalate in 2008.
China’s government has tightened its monetary supply to control inflation and to prevent overheating the economy. This triggered wire rod and fastener price jumps in December 2007. �2008 FastenerNews.com
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