CSC's June Pre-Tax Profit Rises 8% MoM; Steel Prices Supported in US and Europe, Asian Buyers Turn Cautious

China Steel Corporation (2002-TW) announced today (22nd) its self-compiled pre-tax profit for June reached NT$1.466 billion, an 8.3% increase month-on-month. The company's pre-tax profit for Q2 totaled NT$3.306 billion, turning profitable from the previous quarter. For the first half of the year, pre-tax profit amounted to NT$2.339 billion, with monthly, quarterly, and cumulative profits all turning profitable compared to the same period last year.

Looking ahead, CSC noted diverging trends in global steel prices. In the US, despite tariff policies and weak domestic demand, hot-rolled steel prices remain at high levels. The European Union has reduced tax-exempt quotas for imported steel, and supply constraints are driving positive price developments locally. In contrast, Asian markets have entered the traditional off-season with weak demand, and buyer sentiment has become increasingly cautious.

From a macroeconomic perspective, renewed conflicts in the Middle East increase the likelihood of rising international crude oil prices. US inflation risks are escalating, while Europe is raising interest rates to combat inflationary pressures. Mainland China continues to face downward pressure from its property market slump, and Taiwan's economy is exhibiting K-shaped development—while high-end technology supply chains enjoy strong export performance, driving industrial output recovery, traditional industries continue to face growth challenges.

CSC's revenue in June was NT$27.994 billion, down 9.3% MoM but up 9.6% YoY. Operating profit was NT$1.518 billion, down 0.7% MoM but turning profitable YoY. CSC explained that while per-unit gross profit in its steel business improved from the previous month, lower sales volume resulted in minimal change in operating profit. However, increased dividend income boosted non-operating performance.

For Q2, revenue reached NT$88.885 billion, up 12.4% QoQ and 4.5% YoY. Operating profit was NT$3.666 billion, turning profitable compared to both the previous quarter and the same period last year. For the first half, revenue totaled NT$168.002 billion, with the YoY decline narrowing to just 0.2%. Operating profit was NT$3.046 billion, also turning profitable YoY.