After Taiwan's Tung Ho Steel increased its H beam prices by about 2%; another major H beam supplier, Dragon Steel which is also the subsidiary company of China Steel Corporation has also planned to hike its H beam prices by TWD 500 per tonne in the end of September 2011.
Because of the slow market demand, the two companies didn't raise their offer prices since this Q2, however, the dropping NT dollar has pushed up steel mills' costs. Thus, Dragon Steel has been forced to raise the prices to avoid the loss.
Dragon Steel said the scrap prices have surged by USD 15 per tonne in recent months and the exchange rate between NTD and USD has already dipped by 15% in average.
Therefore, it is necessary for them to hike the new offer prices in October.