The decision, according to Taiwan’s largest steelmaker, takes into consideration the competitiveness of its customers in export markets, as the regional steel sector continues to consolidate.
China Steel highlighted the steady recovery in the global manufacturing industry this year, coupled with the likelihood of decreasing interest rates, which are anticipated to drive future steel demand. With European and US economies stabilizing, the European steel market is showing signs of improvement, and US steel prices have been on the rise in recent months, which is positive news for export-dependent Asian countries.
Citing data from the World Steel Association and the IMF, China Steel mentioned forecasts of modest growth in global steel demand and the overall global economy for 2024.
Despite these positive indicators, China Steel noted that prices of crucial raw materials, such as iron ore and coking coal, remain significantly higher than the 10-year average. Iron ore is priced at USD 100 to USD 110 per tonne, while coking coal is maintained at USD 220 to USD 230 per tonne.
While there is an expectation of sequential improvement in the steel market in the upcoming quarters, China Steel expressed concerns about China’s unfair trade practices, particularly its overproduction of low-cost steel products, which have negatively impacted steel industries worldwide.
Last year, China exported 630,000 tonnes of hot-rolled and cold-rolled steel products to Taiwan, marking a 60 percent increase from the previous year and adversely affecting local steel producers, according to China Steel.
The company stated its intention to gather data on Chinese firms’ dumping practices and implement necessary measures to protect the domestic steel industry. This comes in the wake of anti-dumping complaints filed against China's steel products by several countries, including Brazil, Indonesia, Thailand, Turkey, and Vietnam.
Comments
No comment yet.