China Steel, Taiwan's top steel maker, said on Thursday it will boost domestic prices of steel products by an average of 3.9 percent in the fourth quarter from the previous three months to reflect high raw material prices.
But the rise is smaller than the 17.8 percent increase in the second quarter in an effort to keep China Steel's products competitive, company officials said, in a move that came after mainland China's Baosteel decided to cut prices.
"We've lifted prices by a much larger degree in previous quarters and we think prices have more or less peaked. That's why we've decided to lift prices by only around 3.9 percent in the fourth quarter," said China Steel's Vice President T.H. Chen.
Earlier this week, Shanghai-based Baoshan Iron and Steel (Baosteel) said it will cut fourth quarter sales prices for cold-rolled steel products, the first cut in a year, as demand outlook weakens in China's auto and home appliance sectors.
The news came after Taiwan's markets closed. China Steel's shares fell 2.3 percent, underperforming the main TAIEX index's 0.67 percent decline.
Gasgoo: auto parts source
