Taiwan’s China Steel Corp (CSC) reported a 55pct decline in pretax profit to TWD 655 mln (USD 20.6 mln) in July from the previous month, as weaker Asian steel demand weighed on gross profit.
In January-July, however, CSC’s pretax profit reached TWD 2.99 bln (USD 93.8 mln), reversing a pretax loss of TWD 2.41 bln a year earlier.
Revenue increased 3pct YoY to TWD 197.72 bln (USD 6.20 bln) during the seven-month period, while shipments rose 2pct to 4.45 mln tons from 4.36 mln tons.
CSC said steel prices in the US and Europe remain firm amid trade protection measures limiting imports, while Asian prices continue to decline due to overcapacity.
However, the slower decline in Vietnamese steel prices following production cuts by Chinese mills and lower inventories across Taiwan’s steel supply chain suggest the Asian market may be approaching a bottom, the company said.
The producer added that higher crude oil prices linked to the ongoing Middle East conflict could increase manufacturing costs and add further pressure on steelmakers.
China Steel Corporation (CSC) is Taiwan’s largest integrated steel producer, established in 1971 and headquartered in Kaohsiung. The company has a total consolidated steel production capacity is approximately 15.9 mln tons per year, including subsidiaries such as Dragon Steel. CSC produces a wide range of flat and long steel products.
1 USD / 31.87 TWD