Chung Hung Steel Corporation (CHSC), a Taiwan-based subsidiary of China Steel Corporation (CSC), has decided to maintain its domestic prices for hot-rolled, cold-rolled, and galvanized steel for August. Export prices for September deliveries will be adjusted according to regional market conditions.
Meanwhile, Chinese steel mills are reducing production. Data from the China Iron and Steel Association (CISA) indicates a 4.35% decrease in daily crude steel output by major producers in early July compared to June. The Chinese government's initiatives on energy conservation, carbon reduction, and steel production control are expected to further restrict steel supply in the latter half of the year. The outcomes from China's Central Committee's Third Plenary Session might also affect economic development and potentially increase steel demand if domestic consumption policies are maintained.
CHSC notes that extreme weather conditions, such as high temperatures and heavy rainfall, are impacting both production and demand. Despite these challenges, steelmaking costs remain high, with mills operating near break-even levels. As seasonal conditions improve and with growing expectations of Federal Reserve interest rate cuts, stabilizing the market and implementing measures to enhance customer order competitiveness will be essential for maintaining current price levels.
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