China Steel Corporation (CSC), Taiwan's largest steel producer, announced a small increase in prices for December deliveries. Prices for hot-rolled steel plate, hot-rolled coil (HRC), cold-rolled coil (CRC), and steel coil will be increased by NTD 300 (about USD 9.30) per ton. However, prices for electro-galvanized, electrical, and galvanized steel coils, used for household appliances and computers will remain unchanged.
CSC said the decision was made in light of Taiwan's improving market conditions, the U.S. presidential transition, and China's economic stimulus programs. The company stressed that despite the tightening of global steel supply, end-market demand remains weak and that recovery in the manufacturing sector will take time. It also said that the high availability of low-cost imported HRC in the Taiwanese market has led to sufficient stock levels at local producers and increased price negotiation space. Market players are waiting for Hyundai Steel’s price updates to gain more clarity.
CSC reported revenue of NTD 27.9 billion (around USD 865 million) for October, with a pre-tax net profit of NTD 107 million (approximately USD 3.3 million), while its steel sales reached 560,000 tons in the same period. The company generated a total revenue of NTD 301.89 billion (approximately USD 9.36 billion) from January to October, while its pre-tax net profit increased by 41% to NTD 3.75 billion (approximately USD 116 million).
The profit increase was due to the contribution of dividends from mining investments and the offsetting of operating margins due to lower sales volume. The company noted that avoiding China's low-cost steel raw materials would help reduce risks that could arise from potential US-China trade tensions.
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