China Steel Corp (CSC, 中鋼), Taiwan’s largest steelmaker, yesterday announced that it would keep domestic product prices unchanged for next month to help stabilize the market amid US President Donald Trump’s tariff threats.
The decision follows similar moves by China’s Baowu Steel Group Corp (寶武鋼鐵集), the world’s largest steelmaker, which said it would maintain prices for hot-rolled and cold-rolled plates, while Vietnam’s Formosa Ha Tinh Steel Corp (台塑河靜鋼鐵興業) raised prices for hot-rolled products by US$3 to US$5 per tonne, CSC said in a statement.
Hot-rolled plates are typically used in construction, such as house and bridge building, while cold-rolled steel plates are primarily used in vehicle manufacturing.
Photo: Reuters
Meanwhile, ArcelorMittal SA, Europe’s leading steelmaker, last month announced that it would raise prices for hot-rolled coils by US$22 per tonne, as iron ore and coking coal were persistently trading at high prices, the statement said.
“Considering the uncertain market sentiment for the impact of new US tariffs on our downstream industries, CSC is holding on prices for all products for May to stabilize the market sentiment,” CSC said.
Trump last month invoked Section 232 of the US Trade Expansion Act of 1962 to impose a 25 percent tariff on steel imports, citing national security concerns.
As a result, hot-rolled coil prices in the US have remained above US$1,000 per tonne, CSC said.
In addition, the US administration’s so-called “Liberation Day” 32 percent levy on Taiwanese goods — although postponed by 90 days — has also fueled uncertainty in the market, it added.
“Since some of our downstream customers are negatively affected by the uncertainty of US tariff policies, we will continue to pay attention to the latest developments and roll out support measures to help them secure orders,” CSC said.
If Trump’s 32 percent “reciprocal” tariffs remain in place over the long-term, Taiwan’s GDP growth could be reduced by at least 1.5 percent, putting downward pressure on the current 3.14 percent growth estimate released by the Directorate-General of Budget, Accounting and Statistics in late February, the company added.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS