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.
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