China Steel's Pre-Tax Profit Rises 10% MoM in August, Steelmaking Cost Surge Drives Global Steel Price Recovery

China Steel Corporation (2002-TW) announced today (24th) its self-calculated financial results for August, with a pre-tax profit of NT$723 million, representing a 10.4% increase month-on-month. The cumulative pre-tax profit for the first eight months reached NT$3.718 billion, both showing a shift from losses to profits compared to the same period last year. China Steel stated that sharp increases in coal and iron ore prices have driven up steelmaking costs, thereby stimulating a recovery in international steel prices.

Additionally, due to U.S. tariff policies and tightening supply, hot-rolled steel prices have risen at high levels. In Europe, hot-rolled steel prices have significantly increased due to the Carbon Border Adjustment Mechanism (CBAM) and import tariff quota restrictions. In the Asian region, benefiting from improved steel supply-demand fundamentals, most steel mills have successfully halted price declines and reversed into upward trends.

China Steel's revenue for August was NT$27.948 billion, down 6% month-on-month but up 13% year-on-year. Operating profit reached NT$789 million, surging 227% month-on-month and turning profitable compared to a loss in the same period last year. Cumulative revenue for the first eight months totaled NT$225.67 billion, up 3.8% year-on-year, while operating profit reached NT$4.076 billion, shifting from a loss to profit compared to the previous year.

China Steel explained that improved unit gross margins in its steel business boosted core profitability in August. However, non-operating income declined due to reduced dividend receipts, so the growth in pre-tax profit was less than that of operating profit. Comparing the first eight months cumulatively with the same period last year, increased sales volume in the steel business led to higher operating profit, while non-operating items showed little change.

Overall, China Steel noted that while the global economy continues moderate growth, the ongoing Middle East conflict and the U.S.'s formal shift to interest rate hikes in September—potentially followed by further hikes before year-end—are increasing uncertainties, requiring continuous monitoring. Taiwan, meanwhile, is benefiting from strong demand in the AI supply chain, enhancing export and investment momentum.