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Taiwan's Dragon Steel starts blast furnace maintenance after 15 years

Dragon Steel, one of Taiwan's leading steel producers, has begun extensive maintenance on its first blast furnace, which has been in continuous operation for 15 years. Supported by China Steel Corporation (CSC), the company's major shareholder, the maintenance is expected to take approximately 4.5 months and will be completed by mid-July. During this period, Dragon Steel will reduce its production capacity by about 1 million tons.

Taiwan's Dragon Steel starts blast furnace maintenance after 15 years

Du Junyan, Executive Vice President of Dragon Steel, stated that this major overhaul is being carried out according to a planned schedule, with stocks of flat steel semi-finished products prepared in advance. As a result, production and sales processes are expected to remain largely unaffected.

Lü Shaorong, Chairman of Dragon Steel, emphasized that the company's strategy is not only to improve quality and reduce costs but also to lower carbon emissions, enhance energy efficiency, and, most importantly, invest in equipment modernization.

Signs of economic revival

Over the past year, the steel industry has faced challenges due to political uncertainties, including the Russia-Ukraine war, conflicts in the Middle East, the U.S. presidential election, and weakening domestic demand in China. However, as of this year, the global economy is showing signs of recovery. Additionally, China's implementation of financial expansion policies to stimulate the housing market could positively impact the steel sector by reducing aggressive price competition in exports.

Lü Shaorong noted that steel prices in the U.S., Europe, South Korea, India, Vietnam, and Indonesia have been rising since Donald Trump took office as the U.S. president. He stated that this upward trend in prices could contribute to market rebalancing and the recovery of the steel industry.

Dragon Steel aims not only to maintain its blast furnace but also to implement a “AI blast furnace” system, develop high-quality recycled steel production technology, and establish a more sustainable steel manufacturing model.  

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