Taiwan: CSC's Steel Report: 2023 Insights

CSC
CSCImage Source: CSC

Synopsis:

Taiwan's China Steel Corporation unveils its steel sales performance, reporting 610,273 metric tons sold in December 2023 and a yearly total of 7.75 million metric tons. Despite a decline in operating revenues and income for the year, the global steel market's upward trend signals a positive outlook for CSC's operations.

 

Article:

China Steel Corporation (CSC), Taiwan's largest steelmaker, released its sales report, detailing a carbon steel sales volume of 610,273 metric tons in December 2023 and a robust annual performance, totaling 7.75 million metric tons.

In December, CSC's operating revenues reached NTD 29.48 billion ($949.65 million), witnessing a marginal 1.2% month-on-month decline. The operating income for the month landed at NTD 894.87 million ($28.83 million), down from the previous month's NTD 1.26 billion.

Throughout the entire year, CSC faced a 19.2% year-on-year decrease in operating revenues, amounting to NTD 363.33 billion ($11.7 billion). The operating income for the year marked NTD 3.59 billion ($115.84 million), a significant decrease from the previous year's NTD 18.26 billion.

The company attributes the decline in operating revenues and income to slight reductions in sales prices, partly stemming from delayed exports. However, increased non-operating income partially mitigated the impact on profit before income tax.

Despite these challenges, CSC notes positive trends in the global economic landscape, with a stabilizing macroeconomic environment and cooling inflation. Notably, the conclusion of interest rate hikes in Europe and the United States eases corporate financing pressures. Global automotive production and sales remain active, hinting at a potential 4% year-on-year growth in global automobile production in 2024.

Furthermore, the United States' steel mills' price increments since October 2023, with a significant rise in international steel prices, have contributed to an overall positive outlook for steel operations.

Conclusion:

China Steel Corporation's 2023 performance witnessed challenges amid declining revenues and income. However, the global steel market's positive momentum, driven by active automotive production and increasing steel prices, hints at a brighter trajectory for CSC's operations in the upcoming year.

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