China Steel Corp is mixing things up. The company “is ramping up production of high-performance steel while turning to real estate as part of an effort to weather a stretch of flat demand for its traditional core products,” reports The Wall Street Journal.
“China Steel Corp. is producing more higher-margin products, such as nonoriented silicon steel sheets, which are used to make generators and transformers, while also diversifying into property development and hotel management near its home base and in Taipei, Chairman Tsou Jo-chi said in his office, which overlooks Kaohsiung Harbor in southern Taiwan.”
“Steelmakers around the world are shifting away from low-margin crude steel, cutting prices, slashing capital expenditures, freezing expansion plans and seeking to diversify revenue sources in the face of overcapacity—particularly in China—and relatively slow global demand growth.”
Strengthening prices ended a three-day flat streak as the price of Chinese coking coal moved up by 2.9 percent on Tuesday. Following three days of little change, the price of Chinese HRC rose by 1.7 percent. Chinese slab gained 0.6 percent to finish. The price of iron ore 58% fines from India were range bound.
Also on the LME, the steel billet cash price held steady around $240.00 per metric ton. The steel billet 3-month price saw little movement yesterday on the LME, closing out around $240.00 per metric ton.
The spot price of the US HRC futures contract inched up 1.5 percent. The 3-month price of the US HRC futures contract declined 0.5 percent.