Taiwan’s largest steelmaker China Steel Corporation (CSC) has stated in its preliminary financial results for the January-May period of this year that the Middle East has affected energy supplies, driving up commodity costs. The International Monetary Fund (IMF) has slightly lowered its global economic growth forecast for this year to 3.1 percent.
According to the statement, China has implemented crude steel production cuts and tightened steel export controls, resulting in a 4.1 percent year-on-year decline in crude steel production and a 9.7 percent decrease in steel exports during the first four months of the year.
In addition, the US-Iran conflict has led Iranian steel mills to reduce production, causing a sharp drop in Taiwan’s steel exports. The resulting supply tightening pushed international steel prices significantly higher in the second quarter. Following the recent rally, international steel prices have entered a high but range-bound trend, with market sentiment remaining mixed.
Meanwhile, in May, the company’s carbon steel sales volume totaled 673,561 mt, while in the January-May period its carbon steel sales volume amounted to 3.21 million mt.
In the first five months, CSC’s operating revenues amounted to NTD 140 billion ($4.40 billion), decreasing by 1.9 percent year on year, while it recorded an operating profit of NTD 1.53 billion ($48.06 million), compared to an operating profit of NTD 402.10 million recorded in the same period last year.
