China Steel Corp (中鋼), the nation’s only integrated steel maker, yesterday said revenue declined last month on a monthly and yearly basis due to weak steel prices.
Sales last month were NT$15.4 billion (US$529.2 million), representing a monthly decline of 2.13 percent and a yearly fall of 24.73 percent, the firm said.
However, pretax profit last month rose 16.3 percent from the previous month to NT$707 million and 22.77 percent from a year earlier, the company said in an e-mailed statement.
From January through last month, pretax profit totaled NT$5.3 billion, down 78.25 percent year-on-year, while revenue amounted to NT$191.95 billion, down 13.56 percent from the previous year, data showed.
“The low steel prices are the reason for the year-on-year decline in the company’s revenue,” China Steel vice president Steve Lee (李慶超) said by telephone.
However, Lee said profit rose month-on-month last month because of lower raw material costs. Furthermore, steel prices increased slightly last month, especially in the US and China, an indication that prices have bottomed out.
“While the supply-and-demand condition has slightly improved in the short term, global supply is still expected to be larger than demand in the long run, which will keep prices from rising significantly,” Lee said.