TAIPEI (TVBS News) — China Steel Corporation (中國鋼鐵) announced on Thursday (Jan. 9) that it will maintain flat pricing for February to stabilize customer confidence. This decision aims to counter conservative downstream procurement, address inventory adjustments, and anticipate increased demand following the Lunar New Year. Also, the depreciation of the New Taiwan dollar is expected to enhance the company's export competitiveness.
China Steel highlighted that global manufacturing demand remains subdued, with markets closely watching the effects of new international policies under President-elect Donald Trump. In response to slowing inflation, central banks in Europe and the U.S. have adjusted interest rates. The Organisation for Economic Cooperation and Development (OECD) forecasts a global economic growth rate of 3.3% for 2025, while Taiwan's central bank predicts a domestic growth rate of 3.25% this year.
Despite a nine-month growth streak in Taiwan's industrial production index by last November, China Steel noted that excess capacity and low-price competition in certain international regions continue to impact export orders. The steel market typically experiences seasonal slowdowns and reduced demand during the Lunar New Year holiday, coupled with slight declines in iron ore and coal prices. Furthermore, the depreciation of the Chinese yuan has resulted in decreased hot-rolled steel prices in China.
In response, China has committed to expanding economic stimulus policies, intensifying monetary policy adjustments, and promoting equipment upgrades and trade-ins, which could bolster steel demand. Social steel inventories in China dropped to 7.6663 million tons in early January, maintaining a five-year low, thus tightening supply. Similarly, Baowu (中國寶武) has set flat-to-high pricing for flat products in February, marking stability for three consecutive months and suggesting a steady outlook for the steel market.