China Steel's July Shipments Rebound to Over 1 Million Tons, Revenue Up 20% Year-on-Year; First Seven Months Return to Growth Track

China Steel (2002-TW) announced today (the 10th) its July revenue reached NT$29.719 billion, representing a 6.2% increase from the previous month and a 21.9% year-on-year rise. Cumulative revenue for the first seven months of the year totaled NT$197.722 billion, up 2.6% compared to the same period last year, marking a return to growth.

In July, the group's total shipments amounted to 1.001 million tons, a significant rebound of 225,000 tons from June’s 776,000 tons, exceeding the monthly target of 985,000 tons by 16,000 tons. China Steel’s own shipments reached 704,000 tons, surpassing its 669,000-ton target by 35,000 tons. Meanwhile, subsidiary Chung Hsing Steel shipped 297,000 tons, falling 19,000 tons short of its 316,000-ton target.

China Steel explained that the strong rebound in July shipments was driven not only by delayed deliveries from June due to adverse weather conditions but also by the gradual release of domestic demand from technology-related construction projects and public infrastructure developments. Domestic sales shipments reached 581,000 tons, exceeding the 535,000-ton target by 46,000 tons, while overseas shipments totaled 420,000 tons, falling 30,000 tons short of the 450,000-ton target.

The company noted that international steel markets are currently experiencing sharp regional divergence. Demand in the U.S. market remains strong, with prices fluctuating at high levels. The European market is weakening due to tighter policies and reduced imports. The Chinese market faces challenges from seasonal weakness and overcapacity. Southeast Asian markets are undergoing seasonal adjustments with intensifying competition.

In summary, China Steel observes a global steel market characterized by 'strength in the U.S., weakness in Europe, and volatility in Asia.' Despite short-term pressures from low-priced imported steel and trade protection measures, the company expects overall steel demand to gradually bottom out and recover in the second half of the year, supported by ongoing domestic public infrastructure projects.