Taiwan-based China Steel Corporation (CSC) sold 2.72mn mt of carbon steel in the first quarter (Q1 FY2020), up 4pc from 2.60mn mt sold in the prior year quarter. In March, CSC sold 962,092mt carbon steel, up by 1pc from a month ago. Domestic sales were 69pc of the total shipment.
CSC reported an operating loss of NT$2.37mn ($78,950) for Q1 compared to a profit of NT$5.25mn in the prior year quarter, according to the company’s preliminary results release. The company’s revenue for the quarter declined by 19pc to NT$7.79mn from NT$9.62mn a year ago due to weak demand and a slump in steel prices as a result of the COVID-19 pandemic. Hike in raw material prices because of supply disruption also added to the company’s losses.
Citing the adverse impact of the virus, CSC last week cut steel prices by NT$600-900/mt for June deliveries and in March the company had cut prices for May shipments by NT$300/mt, as reported by Davis Index.