The Kaohsiung-based CSC will reduce prices from USD 25 to USD 38 per ton in October, following this month’s cuts of USD 16 to USD 19 per ton. For the upcoming quarter, CSC plans to lower prices by USD 16 to USD 47 per ton for most products, while the price of SM570M-type steel plates, used in construction, will remain unchanged.
According to the company, the global steel market remains weak, and domestically, uncertainty is driving a cautious approach, with supply chain businesses grappling with an industrial slowdown. CSC highlighted that the decision to lower prices is aimed at fending off competition from cheaper imports and aligning with domestic market conditions.
Global steel demand remains weak due to a slow recovery in the manufacturing sector, particularly in the US. In China, Angang Steel Co reduced its hot-rolled product prices for next month by USD 28 to USD 34 per ton due to weak demand, while China Baowu Steel Group, the world’s largest steelmaker, kept its prices unchanged for October but did not provide clear visibility on future orders.
In Southeast Asia, hot-rolled steel prices plunged by USD 35 per ton last month, largely driven by an influx of cheaper Chinese steel. Vietnam’s Formosa Ha Tinh Steel Corp also lowered its prices by USD 16 per ton to match the region's weak market demand.
Despite these challenges, CSC reported pretax profits of USD 18.22 million for July, a 15% decline from June’s 21.3 million USD. However, during the first seven months of this year, pretax profits surged by 218% y-o-y to USD 127.8 million, while consolidated revenue increased by 1.2% annually to USD 6.81 billion.
Previously, CSC had informed investors that it expects better financial results in the second half of the year, with the final quarter traditionally being the strongest season for the steel industry.
Comments
No comment yet.