Taipei, March 10, 2010 (CENS)--Feng Hsin Iron & Steel Co., one of Taiwan`s leading blast-furnace operators, recently raised selling prices of steel bars and wire rods to be delivered in March by 3.1%, or US$21.875 per metric ton.

The higher prices will help Feng Hsin post growth in earnings. Feng Hsin president M.J. Lin noted prices for steel bars will be sustainable as prices for global scrap steel quotations have exceeded US$400 per metric ton, adding Taiwan`s demand for steel bars will grow the rest of this year backed by start-ups of many public works projects.

Lin noted steel prices will be pushed up by increasing production costs.

A leading operator of blast furnaces, Feng Hsin has competitive edge over rivals as it focuses on high-margin steel bars for consumers from fastener and machine-tool manufacturing sectors.

An institutional investor estimated Feng Hsin currently can generate over US$93.75 per metric ton from selling steel bars. Based on a monthly output of 25,000 metric tons of steel bars, the company can generate US$2.34 million in monthly earnings.

Feng Hsin can raise selling prices of steel bars in April and May as its quotations still lag distribution prices by US$62.5 per metric ton.

(by Ben Shen)