CENS reported that, with the European Union to slap anti dumping taxes on imported seamless stainless steel from China, Walsin Lihwa Corporation, one of Taiwan's leading manufacturers of the products, will see a slowdown in its plant in Changshu, which will force the plant to realign overseas marketing strategy.

Other stainless steel suppliers in Taiwan, including Yeun Chang Industrial Co and Jaung Yuann Enterprise Co also see a grim 2012, with both makers unable to profit from the anti dumping taxes since they focus on production of non seamless stainless steel.

A domestic trader noted that the European Union will impose antidumping taxes ranging from 48.3% to 71.9% on seamless stainless steel imported from China, whose exports of seamless stainless steel will be severely impacted since the stainless steel market is still in the doldrums.

Benefiting from the pipe replacement project launched by the Formosa Plastics Group in its sixth naphtha cracking complex in Mailiao, Yunlin County, central Taiwan, Yeun Chang and Jaung Yuann will receive orders in the months to come, despite flat sales in the fourth quarter of 2011 due to the sluggish market.

Yeun Chang posted TWD 396 million in after tax earnings or TWD 1.07 per share in the first three quarters of 2011, with Jaung Yuann's counterpart being TWD 20 million in after tax earnings, or TWD 0.07 per share.

At present the European Union accounts for 12% of China's total sales of seamless stainless steel. A trader predicts a delayed recovery of the stainless steel market as many nations are resorting to trade barriers to block imports.

(Sourced from www.cens.com)