TAIPEI (Taiwan News) — Taiwan’s China Steel Corporation said Thursday it will cut monthly steel prices by NT$600 (US$20) per tonne and reduce or freeze Q3 rates, citing sluggish global demand and a strengthening Taiwan dollar.
CSC said global trade sentiment has soured amid rising protectionism, particularly US tariff hikes that have disrupted supply chains and slowed economic momentum, per CNA. Ongoing global tariff negotiations remain uncertain, pushing buyers to adopt a wait-and-see approach, per MoneyDJ.
Although Taiwan’s domestic demand is holding steady, export momentum has weakened as tariff risks and currency appreciation weigh on competitiveness. The government has revised Taiwan’s GDP forecast slightly downward, from 3.14% to 3.1%.
While US steel and aluminum tariffs were raised to 50% on June 4, offering some price support, CSC said weak demand is preventing any real rally. European steel prices have declined with the off-season, and Asian export prices are also softening, signaling a short-term correction in the steel market.
Raw material costs have also shifted. Iron ore prices are hovering around US$95 per tonne, while coking coal has dropped to US$180, adding to volatility in production cost forecasts.
The Taiwan dollar’s appreciation is making it harder for Taiwan’s exporters to compete, CSC added. Sluggish order releases and weak pricing downstream are further straining the domestic steel supply chain.
