Taiwanese rebar mills worry about rise in power prices
It is reported that since Taiwan Power Company may raise industrial usage power prices by 30% or higher, most of Taiwanese rebar mills have temporarily stopped offering at this moment.
Taiwanese rebar mills, such as Tung Ho Steel and Wei Chih Steel said the once the power prices increase for sure, they may consider to cut production in this summer.
In fact, Taiwanese rebar mills’ gross profit rate is only about 3%, and power prices acquire about 5% of the mills’ total costs.
Therefore, once the power prices rise, Taiwanese rebar mills will face highly pressure in cost part.
News Date 02 Apr 2012 14:15:38 reported by Jack Lee