A sharp rise in steel prices of Bt12,600per tonne

Tag : Steel Products

Company president Santi Charnkolrawee said in a statement TataSteel's revenue in the first quarter was Bt11.18 billion from salesvolume of 351,000 tonnes in the first quarter, compared to salesrevenue of Bt10.15 billion and sales volume of 388,000 tonnes inthe fourth quarter last year. The rise in sales revenue was due to high global demand for steelbillets, which have caused international billet prices to soar andreduced availability. This has resulted in a simultaneous jump inscrap, finished rebar and wire-rod prices.
However, the lower sales volume is primarily due to a slower takeup on account of the rainy season.
Siam City Research Institute (SCRI) said in a research note thatthe company should see higher net profit in the second half becauseglobal demand between 2008-2010 is forecast to grow by 6-7 per centa year. Higher steel prices in the second half this year shouldboost Tata Steel's 2008 net profit growth by 59 per cent on year,SCRI said.
"The company should keep its margin spread of over Bt10 perkilogram, while its competitors will face a shortage, this willboost net profit this year to Bt4.3 billion," SCRI forecast.