China Steel puts ceiling on sales abroad

China Steel Corp (中鋼), Taiwan's largest steelmaker, is capping sales abroad at the current level of 30 percent of volume, Executive Vice President Chen Yuan-cheng (陳源成) said.

"We won't let exports exceed the current proportion and will try as much as possible to supply our domestic customers," Chen said in an interview.

China, the world's fastest-growing major economy last year, is Taiwan's biggest export market. China and Hong Kong together buy as much as 30 percent of China Steel's overseas sales to meet demand to build roads, bridges, cars and household appliances.

Demand from China pushed up international steel prices, which benefited earnings last year at government-controlled China Steel and other Taiwan steelmakers, including Sheng Yu Steel Co (盛餘鋼鐵).

China Steel's fourth-quarter profit surged almost four times after the company raised prices amid a recovery at home and in China.

China Steel chairman Lin Wen-yuan (林文淵) said he will soon meet Ministry of Economic Affairs officials to report on operations. The ministry, China Steel's biggest shareholder, is looking to pare its 40 percent stake. China Steel will seek "long-term strategic management investors," Lin said, declining to offer a time frame for the government stake sale or other details.