China Steel Corp (中鋼) said this year's profit may exceed its forecast as a recovery at home and abroad boost sales, even after China, the world's biggest steel user, took steps to cool its economy.
"We haven't heard anybody asking for a slowdown in shipments, demand is still robust and we still face overbooking," said China Steel executive vice president Chen Yuan-cheng (陳源成) in a telephone interview from Kaohsiung.
Taiwan's largest steelmaker is "optimistic" about its profit forecast and room for further price increases to bring its prices in line with the international market, Chen said, declining to specify if the company would raise its profit forecast for this year.
China Steel in December forecast net income at NT$32.9 billion (US$991 million) for this year, against its profit last year of NT$37 billion.
The company earlier forecast a lower profit this year on concern it won't be able to raise prices at the same pace as increases in costs of iron ore, scrap metal, coal and shipping, Chen said.
China Steel is to review quarterly domestic prices at the end of this month.
The company raised prices every quarter since the second quarter of 2002 as demand from China, the world's seventh-biggest economy, drove up prices of the metal.
China Steel sells more than a third of its exports to China.
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