Taiwan, 4 Major Steel Makers Post Lower Net Profits for Jul-Sep

Taiwanese 4 major steel makers’ non-consolidated net profit before tax decreased for July-September from April-June when iron ore and ferrous scrap prices increased. China Steel’s profit decreased for the first time after Lehman’s fall. The 4 makers’ profits are likely to maintain low for October-December when domestic and overseas demand is weakening and many makers downed the selling price in October.

China Steel’s profit decreased by 26.7% to NT$ 10.5 billion for July-September from April-June. Fenghsin Steel’s profit decreased by 13.4% to NT$ 821.48 million when iron ore, coal and ferrous scrap price increased for July-September. On the other hand, both companies reduced the selling price in September along downturn of Chinese steel demand.

China Steel’s sales increased by 9.6% to NT$ 64.958 billion for July-September from April-June. The sales volume of steel products increased by 1.4% to 2.522 million tonnes. Fenghsin Steel raised the selling price of rebar and special steel bar in August and increased the net sales by 6.9% to NT$ 8.901 billion for July-September from April-June.

Chung Hung Steel Corporation, China Steel’s group company, decreased the sales by 16.9% to NT$ 9.568 billion for July-September from April-June. The sales of hot rolled coil decreased by 13.2% to 434,894 tonnes. Tungho Steel, Taiwanese largest electric furnace steel maker, decreased the sales by 3.5% to NT$ 7.783 billion.

China Steel’s production increased by 2.2% to 2.482 million tonnes for July-September from April-June thanks to the shipment increase for manufacturing industry. Chung Hung Steel’s production decreased by 21.3% to 381,251 tonnes.

China Steel lowered the selling price for October-November while set the price unchanged for December. Frnghsin Steel lowered the selling price by NT$ 300 per tonne in early October. Taiwanese steel makers cautiously watch market conditions but Chinese steel demand trend is unclear.