China Steel Corp (CSC), Taiwan's largest steelmaker, announced a reduction of TWD 500-600 (USD 15.5-18.6) per ton in the list prices of its carbon steel products for September. The move, aimed at boosting the competitiveness of its customers in global markets, comes as the company tries to navigate a challenging period in the steel industry.
Traditionally, the third quarter is a slow season for steel consumption in Asia, with demand often weakened by seasonal factors. In its latest statement, CSC highlighted that the current market is under further pressure due to an oversupply of steel across the region, intensifying competition and making things difficult for local producers.
In response to these market conditions, CSC has decided to offer price concessions to help its customers secure more overseas orders and mitigate the effects of low-cost steel imports. This decision reflects the company's strategy to support its partners amid the weakness of the global market.
Earlier this month, major steelmakers in China, including Baoshan Iron & Steel Co., a subsidiary of China Baowu Steel Group, also announced price reductions. Baoshan, for example, reduced its hot-rolled carbon steel coil prices by 100 Yuan (USD 14) per ton for sales in September, following a similar reduction in August.
Despite the current market challenges, CSC remains optimistic about Taiwan's economic prospects. The company pointed to the International Monetary Fund's (IMF) July forecast, which predicts global economic growth of 3.2% in 2024. CSC also expects steady growth in Taiwan's economy, driven by emerging sectors such as artificial intelligence.
Moreover, the Taiwanese government has implemented several initiatives to stimulate local steel demand, such as subsidies to replace old white goods with new ones and gradually increasing the use of locally produced auto parts to reduce dependence on imports. These measures are expected to contribute positively to the performance of the local steel industry in the coming months.
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