Taiwan’s top steelmaker China Steel Corp said Jan. 31 it expects to see a recovery in the steel market over the coming months as Chinese demand picks up, in a preliminary financial statement for 2022 that showed a 10% fall in its carbon steel sales volumes for the year.
Noting that global crude steel output is expected to fall 1.5% in 2023 to 1.822 billion mt due to production cuts, it said international steel prices were "picking up.”
“The steel market is expected to enter into restocking cycle after the Chinese New Year and a U-shaped rebound is around the corner,” it added
The company said the steel-using sectors in China have resumed restocking after the government eased border restrictions and rolled out massive stimulus policies. Post Lunar New Year the steel market is expected to see an "upward trajectory" as supply chain bottlenecks ease and amid housing and auto market stimulus measures, it added.
CSC said in the preliminary financial statement that 2022 carbon steel sales amounted to 8.59 million mt. It did not provide comparison numbers but according to its statement last year it sold 9.56 million mt in 2021.
The company’s full year pre-tax profit was down 72% at T$23.26 billion ($773.24 million) in 2022, the company said in the statement. Revenue fell 4% year-on-year to T$449.57 billion.