China Steel Corporation, the leading integrated steel manufacturer in Taiwan, has decided to keep the prices of most of its products stable for the upcoming month. This decision is aimed at reducing risks after the U.S. government implemented new tariffs.
The move came after U.S. President Donald Trump signed a directive imposing a 25% tariff on steel and aluminum imports. Reports indicate that last year, iron and steel products ranked as Taiwan's fifth-largest export to the United States, with a total value of $4.3 billion.
The company issued a statement, explaining, "China Steel Corporation remains committed to market development, as global demand in industrial production is still in a slow recovery phase, while Trump's trade policy has led to considerable uncertainty."
Based in Kaohsiung, the company added, "To offer flexibility to our downstream partners, China Steel Corporation has opted to maintain its product prices in March, and will continue to run various support initiatives to assist customers in securing orders."
The company anticipates a notable improvement in the steel market by the end of the current quarter, as the International Monetary Fund predicts a 3.5% global economic growth this year, with Taiwan’s domestic demand also showing gradual improvements, aided by advanced technologies like artificial intelligence. Furthermore, the prices of iron ore and coal have remained consistent, ranging between $100 and $110 and $185 and $195 per ton, respectively, while China is promoting an industrial transformation in its steel industry. These factors have contributed to a better balance between supply and demand, which will benefit the market going forward.
On the price front, Baoshan Iron and Steel, China's largest steel producer, has increased the price of domestic steel sheets for next month’s delivery by 100 yuan (about $13.79) per ton. Steel prices in the U.S. have also shown an upward trend recently. The 25% tariff imposed by Trump on all steel imports is expected to further drive up prices and improve company profitability.
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