Taipei, March 9, 2010 (CENS)--With the JFE of Japan recently raising selling prices of hot-rolled steel by 27% to US$700 per metric ton, Taiwan`s steel product manufacturers are expected to follow suit. Such trend will benefit integrated producers as China Steel Corp. (CSC) and its affiliate-Chung Hung Steel Corp. CSC is expected to raise wholesale hot-rolled steel prices to be shipped in June.

An industry insider noted CSC`s quotations for hot-rolled steel lag behind global prices, which will drive CSC and Chung Hung to raise prices.

Such price adjustments depend on response from downstream firms, including Hsin Kuang Steel Co., Chun Yuan Steel Co., Yieh Phui Enterprise Co., Sheng Yu Steel Co. and Kao Hsing Chang Iron & Steel Corp. which still hold adequate low-priced inventories.

A domestic trader said the hot-rolled steel prices quoted in the East Asian market have risen sharply. For instance, Japanese manufacturers in this line have raised the prices for hot-rolled steel twice in just two weeks to reach US$750 from past US$700 per metric ton. POSCO and Hyundai, two South Korean major steel conglomerates, are ready to raise quotations on major products.

In addition, hot-rolled steel quoted in Southeast Asia have jumped to US$630 per metric ton, US$30 more than that quoted two months ago. Currently, CSC and Chung Hung quotes hot-rolled steel at US$610 and US$580 per metric ton, respectively.

An industry analyst believed there is ample room for manufacturers of hot-rolled steel to raise prices as spot prices for cold-rolled steel have reached US$781.25 per metric ton, over US$125 more than hot-rolled steel at US$634.37.

(by Ben Shen)