China Steel Reports Nearly 10% Year-on-Year Revenue Growth in June; Second-Half Demand Expected to Gradually Bottom Out and Recover

China Steel (2002-TW) announced today (9th) its June revenue reached NT$27.994 billion, representing a 9.3% decrease month-on-month but a 9.6% increase year-on-year. Second-quarter revenue totaled NT$88.885 billion, up 12.4% quarter-on-quarter and 4.5% year-on-year. First-half revenue amounted to NT$168.002 billion, with the year-on-year decline narrowing to just 0.2%.

China Steel stated that although the short-term steel market has been impacted by heavy rains and shifting international policies, demand is expected to gradually bottom out and warm up in the second half, driven by technology-related construction projects and the release of public infrastructure contracts.

In terms of steel market conditions, domestic hot-rolled steel prices in the U.S. continue to hit record highs. The European Union will reduce import quotas starting July 1, 2026, causing import buyers to pull back.

In China, southern regions entered the rainy梅雨 season and high-temperature period in June, leading to a sharp drop in construction starts. As a result, the China Steel Price Index (CSPI) declined by approximately 3.1%, contributing to a generally weak market sentiment across Asia. ASEAN, having concluded a period of strong expansion over the previous year, shifted in June toward inventory digestion. Additionally, Asian steel products returning from stalled destocking efforts in Europe and the U.S. have intensified regional price competition in Southeast Asia.

China Steel Group shipped 776,000 metric tons in June, 180,000 tons less than May and 74,000 tons below its 850,000-ton target. Breakdown by subsidiary: China Steel shipped 535,000 tons (65,000 tons below target of 600,000 tons), while Chung Hsing Steel (Zhonglong) shipped 241,000 tons (9,000 tons below 250,000-ton target).

The company had initially expected June’s shipment volume to exceed May’s, but consecutive days of heavy rainfall disrupted both domestic and export deliveries. Domestic sales totaled 511,000 tons, falling 30,000 tons short of the 541,000-ton target. Export shipments reached 265,000 tons, 44,000 tons below the 309,000-ton target.