Global Fastener News

Darling at SEFA Conference: China Steel Prices Up 20% Thus Far in 2007

John Wolz

China Steel prices are up 20% thus far this year and Taiwan manufacturers have “pulled all their prices,” Bruce Darling told the Southeastern Fastener Association conference. Steel costs have increased for the last five quarters even though demand is “not strong,” noted the vice president of materials for Porteous Fastener Company.

China Steel, the major steel supplier to Taiwan fastener manufacturers, raised steel prices 11% just last week, Darling noted at the May 22, 2007, SEFA conference in conjunction with the National Industrial Fastener Show/East.

Bruce Sun, chair of the Taiwan Industrial Fasteners Institute, told Porteous officials that his “best estimate was that CSC would make a modest increase in a couple days as they announce their third quarter pricing.” China Steel’s long-range projection “was that steel would continue to rise for some time to come,” Darling added.

Steel prices in China do “not necessarily follow the CSC prices, but long term, they move reasonably close together,” Darling noted.

Low carbon cold headed quality wire rod prices were $300 per metric ton at the beginning of 2002. During the second quarter of 2007 the price was $603 or 101% of the 2002 price. China Steel announced a 3.3% increase in low carbon wire rod for the second quarter of 2007 and medium carbon moved up 2.3% and alloy steel for Grade 5 jumped 4.04%.

China Steel is 48% owned by the Taiwan government. Web:thesefa.com E-mail: bruced@porteousfastener.com �2007 FastenerNews.com