Taiwan’s China Steel Corp (CSC) will reduce domestic steel prices in September, marking its first across-the-board cut since August last year. The reduction follows a surge in low-priced Chinese steel exports, which has pressured global prices.
CSC will decrease prices for commercial-grade HR plates and coils by TWD 600 (USD 18.5) per ton and reduce HR rerolled grades by TWD 500 (USD 15.4) per ton. Prices for CR, GI, and EG coils will also drop by TWD 500 (USD 15.4) per ton.
CSC cited data from the China Iron and Steel Association showing that key steel mill inventories in late July reached 16.05 mln tons, a 10.8pct YoY increase. The oversupply has led to a significant rise in low-priced Chinese exports, with steel exports totaling 61.23 mln tons in the first seven months of 2024, up 21.8pct YoY. The average export price fell by 24.8pct, intensifying global market pressure.
Countries like Vietnam, Thailand, and Turkey have launched anti-dumping actions against Chinese steel. CSC is also considering filing an antidumping petition against China’s low-priced steel imports.
On the demand side, CSC noted speculation that the U.S. may cut interest rates in September, potentially boosting demand for durable goods. Additionally, falling oil prices, cooling inflation, and China’s increased investment in infrastructure and housing could drive steel demand. The Chinese government’s energy-saving initiatives and localized component policies are also expected to support domestic steel demand.
CSC believes the domestic steel industry is at a bottoming stage and aims to help customers secure orders amid volatile market conditions and lower steelmaking costs by adjusting prices.
CSC is the largest integrated steel producer in Taiwan with an annual crude steel output of about ten mln tons.
1 USD / 32.3 TWD
