The steel industry looks set for a bullish year, China Steel Corp. President Sung Chih-yu said yesterday.

Sung made the remarks during a ceremony in which the company's sixth furnace as well as Dragon Steel's second were both activated. The ceremony took place at Dragon Steel in Longjing District, Taichung City.

After the ceremony, Sung expressed to media his optimism about the steel industry this year, in which growth is expected to top that of 2012.

“We recently raised wholesale prices for April and May, and June prices are also expected to stay high,” he said.

However, Sung said he feels more uncertain about the second half, as price variations for coal and iron ores may affect cost.

He said prices were strong during the first half, with orders received by China Steel in the first quarter rising 10 percent compared to the fourth quarter. Orders are expected to grow another 3 percent in the second quarter this year, he added.

As for China, he said prices are still increasing on the other side of the strait. This is especially so after the ascension of new leaders, who immediately announced a new round of infrastructure constructions.

As for the other parts of the world, Japan will strengthen its infrastructure work, while the financial problems in the United States are expected to see solutions soon, he said.

“All these factors will add to a positive development of the steel industry,” he said.

Source: China Post