Steel exports of Taiwan-based China Steel Corporation (CSC) declined in June amid a shortage of containers. Sales were impacted by a resurgence of the COVID pandemic and rainy season, which affected domestic transport.
The company exported 1.08mn mt in June 2021, down 6pc compared to 1.15mn mt in May and 1.17mn mt in April. June marked the second successive monthly drop in exports.
Meanwhile, the steelmaker posted revenues of TWD38.83bn ($1.39bn) in June, a 62.32pc rise from prior June, but a 2.23pc drop from the prior month. The month-on-month decrease was due to a high base effect, as May revenue was the company’s second-highest monthly revenue in 2021.
In the first half of 2021, revenue rose to TWD213.27bn, up by 41.68pc from the prior year amid a ramp-up in production and higher steel prices. For August shipments, the company is likely to keep prices unchanged following the global trend. There is still some room for improvement in the domestic steel prices, given the difference between prices in Taiwan and the international market.
Amid recovering global economic activities, steel demand is likely to stay strong for the rest of 2021, while the cost of iron ore and ferrous scrap could remain elevated on tight supplies. Steel prices surged in H1 due to higher raw materials prices and increased freight charges.
The local government has directed CSC to stabilize steel prices and secure supplies. CSC holds about a 50pc market share in Taiwan. The government has expressed concern about rising steel prices which could hurt downstream steel-consuming MSMEs.