Taiwan’s steel exports in Jun’21 exhibited a mixed trend. While the volumes of finished flat steel declined due to various challenges being faced by South East Asian countries, finished long shipments recorded an increase on a monthly basis.
1. Finished flats: Finished flat exports stood at 5,55,910 tonnes (t) in Jun’21, down 35% m-o-m as against 8,58,583 t in May’21. Also, the export volumes declined by 16% y-o-y against 6,64,163 in Jun’20.
Country-wise exports
- Exports to China slipped by 18% to 86,678 t in Jun’21 as against 105,820 t a month ago.
- Exports to Vietnam dropped by 15% to 92,332 t in Jun’21 as compared with 108,103 t in May’21.
- Exports to Japan and Malaysia fell by 38% and 67% respectively.
2. Finished longs: Exports of finished long steel spiked by 25% to 75,566 t in Jun’21 as compared to 60,311 t a month ago. Similarly, on an annual basis, export volumes went up significantly by 65% contrasted against 45,694 t in Jun’20.
Country-wise exports
- Exports to China stood at 7,088 t (down by 4%) and to Thailand, at 5,520 t (down by 47%) in Jun’21.
- Exports to Australia were by 48% to 20,382 t in Jun’21 as compared to 13,753 t in May’21
- Exports to Vietnam stood at 5,699 t in Jun’21 as against 4,575 t a month ago, registering a hike of 25% m-o-m.
3. Finished flat stainless steel: Export volumes stood at 77,720 t in Jun’21, down by 12% m-o-m as compared to 88,475 t in May’21. On the other hand, export volumes moved up by 52% y-o-y against 51,015 t in CPLY.
Country-wise exports
- Exports to Italy stood at 7,748 t and to Belgium at 6,316 t, down by 22% and 56% respectively on a monthly basis.
- Exports to the US stood at 14,995 t in Jun’21 as against 10,410 t in May’21.
- Exports to Turkey stood at 8,985 t in Jun’21 as against 2,813 t a month ago.
Factors driving exports
- Resurgence in Covid cases: The increased concerns over surging Covid cases with new variants found in the South East Asian countries weighed on the export volumes. Labour problems across major industries and allied services like transportation also hindered trade activities.
- Monsoons in South East Asia weigh on demand for Taiwanese steel: Further, the beginning of the monsoons in the region from June also impacted demand from the region. Countries like China and Vietnam saw reduced activities in the construction and logistical sectors owing to heavy rainfall during the month.
- CSC’s monthly steel sales slip 2% m-o-m: China Steel Corporation (CSC), a leading steel manufacturer in Taiwan, posted a 2% decline in its monthly carbon steel sales to 806,081 t in Jun’21 as against 822,458 sold a month ago, as per data released by the company today. Meanwhile, in Jan-Jun’21 (H1), the company sold around 4,921,998 t of carbon steel.
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