Taiwan-based China Steel Corporation expects positive Q3 (July- Sep) with HRC prices showing an upward trend in Southeast Asia and China markets. Many countries have started resuming operations to pre COVID-19 levels. By the second half of the year, demand is expected to remain healthy and support the company’s operations.
In April, CSC’s total shipments or sales were 857,000mt, down by 11pc from the prior month and 2pc from the prior-year period. Share of domestic sales in total shipments was 67pc. In Jan-April, the company recorded accumulated sales of 3.58mn mt with 68pc domestic sales.
In its statement dated May 21, CSC reported a consolidated operating loss of NT$205.25mn ($6.8mn) in April compared to a consolidated operating income of NT$2.45bn ($82mn) in the prior year. Preliminary consolidated loss before income tax was NT$493.15mn.
CSC steel’s revenue stood at NT$24.5bn ($849.8mn), a decrease by 8pc from the prior month and 23pc from the prior year.
The steelmaker attributes a fall in April sales and revenue to a continuous reduction in steel prices, a slump in demand due to the COVID-19 pandemic outbreak in the country and high costs due to increased raw material prices.
Davis Index had reported about the steelmaker cutting its June shipment prices by NT$600-900/mt ($19-30/mt). Prices were reduced by NT$900/mt ($30/mt) for HRC and CRC shipments and by NT$600/mt ($20/mt) for HDG from the prior month.
Taiwan witnessed domestic rebar prices to remain majorly flat in the May month at NT$13,800-14,000/mt ex-producer. On the other hand, domestic ferrous scrap prices were around NT$7200-7500/mt del mill.
The company expects domestic markets to recover in the second half of 2020. CSC is also considering raising domestic prices for July deliveries as HRC prices are rising steadily in Asia. Post the ongoing rainy season, construction demand could pick up in the country.