Report by Wang,Shang-yi
In May, Taiwanese steel manufacturers (referred to as “manufacturers” below) released their price updates. Carbon steel manufacturers maintained their prices, while stainless steel manufacturers reduced prices by TWD 1,500 per metric ton. The domestic market displayed varied price trends, with the most significant decline observed in low-carbon K-material, whereas screw A-material prices remained unchanged. Adjustments will be made following the announcement of June pricing for bar and wire products by China Steel Corporation (CSC).
The prices of low-carbon steel in Taiwan dropped below TWD 20,000 per metric ton in May, hitting a new low for the year due to the influence of declining international scrap steel prices and significantly lower import quotations. This price level corresponds to the figures recorded in the fourth quarter of 2022. Analysts believe that limited visibility of export orders, coupled with reduced manufacturing activity during Taiwan’s rainy season, has led to a contraction in the domestic market.
The prices for screw A-material, primarily used in screw production, remain unchanged at Taiwanese manufacturers for now. This is primarily due to CSC’s pending announcement of new prices for Q3 bar and wire products. Market expectations suggest a potential reduction of approximately TWD 2,000-3,000 per metric ton. Pricing negotiations between manufacturers and customers continue to be conducted privately, with the final price determined based on the customer’s purchasing volume. The current market quotation for screw A-material from CSC stands at around TWD 2,300 per metric ton.
Taiwanese steel manufacturers report a sales volume decline of over 50% in May. Additionally, the prices of scrap steel and iron ore remain at low levels with frequent fluctuations. Unlike previous monthly adjustments, import market prices are now adjusted on a weekly basis. Customers are concerned about purchasing this week only to face price drops the next. Consequently, procurement activities are characterized by caution and a wait-and-see approach.
Coverpicture by Wang,Shang-yi
