China Steel Reports 55% Monthly Drop in Pre-Tax Profit for July; Earns NT$2.994 Billion in First Seven Months

China Steel (2002-TW) today (20th) announced its self-compiled pre-tax profit for July at NT$655 million, representing a 55% decline from the previous month. The cumulative pre-tax profit for the first seven months amounted to NT$2.994 billion, shifting from a loss to a profit compared to the same period last year. China Steel stated that as domestic downstream inventory adjustments continue to progress, this will positively support the overall development momentum of the steel market.

In July, the company recorded revenue of NT$29.719 billion, up 6% month-on-month and 22% year-on-year. Operating profit stood at NT$241 million, down 84% from the prior month but turned profitable compared to the same period last year. The decline in operating profit was primarily due to reduced unit gross margins in steel sales, while non-operating income, particularly dividend receipts, increased. For the first seven months, total revenue reached NT$197.722 billion, up 3% year-on-year, with operating profit at NT$3.287 billion, also turning positive from a loss last year.

China Steel noted that the U.S. economy continues moderate growth, while Europe's manufacturing demand remains suppressed by high energy costs. Mainland China still faces challenges from a sluggish property market and industrial structural transformation. Taiwan continues to benefit from strong AI-driven demand, which supports overall economic development, with spillover effects boosting other domestic industries and end-consumer activity.

Regarding the steel sector, ongoing Middle East conflicts have kept crude oil prices volatile, maintaining high steelmaking costs. International steel markets show divergent trends: U.S. and European steel prices remain elevated due to trade barriers, while Asian markets remain weak. However, Chinese steel mills' production cuts aimed at improving profitability are helping tighten supply. In Vietnam, price declines have narrowed, signaling potential market bottoming.