- Subdued downstream demand continues to weigh on sentiment
- Intensifying regional competition exerts downward pressure on prices
Taiwan’s leading steelmaker, China Steel Corporation (CSC), has reduced the prices of hot-rolled coils (HRC), cold-rolled coils (CRC), and hot-rolled plates by TWD 300/t ($10/t) m-o-m for July 2026 sales. Meanwhile, prices of hot-dip-galvanised (HDG) and electro-galvanised (EG) steel coils were kept unchanged m-o-m.
Factors influencing CSC’s price revision
Subdued demand offsets cost-side support: Taiwan’s steel market remained under pressure amid weak downstream demand and cautious buying sentiment. Domestic steel prices had risen earlier this year amid escalating geopolitical tensions in the Middle East, which supported global steel prices and increased steelmaking costs.
However, persistent market uncertainty has prompted buyers to adopt a wait-and-watch approach, resulting in subdued trading activity. As a result, weak demand conditions have outweighed cost-side support, prompting producers to lower prices to remain competitive and support downstream consumers.
Intensifying regional competition: Weak demand across Asian markets has intensified competition among regional steelmakers, prompting several producers to either roll over or reduce prices to secure orders amid subdued market conditions.
Baosteel, the world’s leading steel producer has kept its HRC prices unchanged m-o-m for July 2026 sales amid sluggish domestic demand. HDGI prices were also rolled over during the month, reflecting cautious market sentiment.
Vietnamese steelmaker Hoa Phat Group reduced its HRC (SAE1006, non-skin-passed) prices by $13/t (VND 473,836/t) m-o-m for July 2026 sales. Following the revision, prices in southern Vietnam stood at around $584/t (VND 15.37 million/t), excluding VAT. Indian HRC export offers to Vietnam stood at around $583/t in May, while a booking of approximately 90,000 t was reportedly concluded at around $555-585/t CFR Ho Chi Minh City levels for June-July shipment.
Similarly, Vietnamese producer Formosa Ha Tinh Steel (FHS) lowered its HRC prices by around $23/t (VND 605,237/t) m-o-m for July-August 2026 shipments. Following the adjustment, FHS’s SAE1006 skin-passed HRC was priced at approximately $585/t (VND 15,396,443/t) in Ho Chi Minh City, down from $608/t (VND 16,001,773/t) for June 2026 sales. The price cut underscores the growing pressure on regional producers to remain competitive amid subdued demand and competitive import offers.
Export trends: Taiwan’s steel exports increased marginally by 1.9% m-o-m to 0.53 mnt in April from 0.52 mnt in March, although export volumes were still down 20.9% y-o-y from 0.67 mnt in April 2025. The monthly growth was supported by higher shipments to Malaysia and Pakistan. Exports to Malaysia rose to 0.05 mnt from 0.04 mnt in March, while shipments to Pakistan reached 0.01 mnt compared with negligible volumes in the previous month. Exports to Vietnam and the United States remained stable at 0.08 mnt and 0.06 mnt, respectively, whereas shipments to Japan declined to 0.05 mnt from 0.07 mnt.
Outlook
Taiwan’s flat steel market is likely to remain under pressure in the coming weeks as weak downstream demand continues to constrain buying activity, while intense competition among regional steelmakers limits pricing power. Unless end-user demand improves meaningfully across key steel-consuming sectors, prevailing market conditions are likely to keep sentiment cautious and restrict any sustained upward movement in prices.
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