Bloomberg reported that China Steel Corp, Taiwan biggest maker of the metal signed a strategic alliance agreement with Sinosteel Corp as the Taiwanese market slowed.

The Kaohsiung, southern Taiwan based mill said without giving financial details that, the companies will strengthen cooperation in areas including production, trading, engineering and management. Sinosteel with headquarters in Beijing is controlled by the Chinese government.

Mr Peter Tzeng a Taipei based analyst at Polaris Securities Co said “China Steel probably wants to expand in the China market through Sinosteel. The Taiwan market is saturated, so the company must develop overseas markets.”

Taiwan accounted for 67% of China Steel sales volume in July down from 71% a year earlier. Taiwanese base metal producers cut output by 7.2% in June from the previous month, as volatile steel prices damped purchases.

(Sourced from Bloomberg)