Demand for hot-rolled products in Taiwan may maintain at low level

Taiwan’s China Steel Corporation (CSC) increased its price of hot-rolled products by NT$1,200 per ton for May. Asia’s steel prices fluctuated due to the lockdown in China. Hot-rolled product prices remained stable.

However, the demand in the market was expected not to be positive in a short term. There are several reasons that might explain this situation.

First, after the Chinese New Year, prices increased sharply, and most buyers continued to replenish stocks. Therefore, low demands decreased buyers’ willingness to purchase.

Second, the global semiconductor chips shortages made car production reduce, and it will further lower Japan and South Korea’s demand for steel coils.

Third, the Covid-19 epidemic getting severe in Taiwan and increasing inflation might make demands for steel keep decreasing.