Steel price bottoming out could halt before new listing price launch

China Steel announced on Sept. 12 that its consolidated revenue in August amounted to NTD$36.2 billion, down 13% year-on-year. However, in the first eight months of this year, its cumulative revenue was NTD$324.2 billion, up 9% year-on-year.

China Steel is scheduled to open a new listing price for October on the 15th, which has attracted close attention from the market as there is a high chance that the price will rebound for the first duration after four consecutive months of decline.

According to market analysis, the bottoming of steel prices is becoming increasingly obvious, and the overall situation is favorable for the medium and long-term outlook of the steel market. On Sept. 12, China Steel closed at NTD$29.7, a hike of NTD$0.45.

China Steel's revenue in August amounted to NTD$36.2 billion, a 13% year-on-year decrease compared to NTD$41.7 billion in the same period last year. The accumulated revenue from January to August this year was NTD$324.2 billion, an increase of 9.2% compared to NTD$296.8 billion in the same period last year.

Considering the gradual increase in the demand for steel used in the global steel industry, and the fact that South Korea's steel manufacturing hub Pohang-si was hit hard by natural disasters recently, prompting a short-term price hike, China Steel's upcoming new prices for October and the fourth quarter are expected to move towards a "stable monthly price, yet quarterly price decline" direction.

A director of a domestic listed steel mill said that steel production-oriented areas in South Korea like Pohang-si were hit hard by floods and fires, causing steel prices to rise in the short term.

On the other hand, the monthly prices for bar wire and steel plates are important raw materials for the screw and nut, hand tools, and machinery industry. There is expected to be a sharp reduction in the fourth quarter to be close to the international market price and assist related industries in receiving orders.