CSC: China's production cuts and geopolitical tensions are leading to a reduction in global steel supplies

China Steel Corporation (CSC), Taiwan's largest steel company, said in its preliminary financial results for January-May this year that the Middle East had affected energy supplies, leading to higher commodity prices. The International Monetary Fund (IMF) has slightly lowered its global economic growth forecast for this year to 3.1 percent.

According to the statement, China has implemented steel production cuts and tightened steel export controls, resulting in a 4.1% year-on-year decline in steel production and a 9.7% decline in steel exports during the first four months of the year.

In addition, the conflict between the United States and Iran has led to Iranian steel mills cutting production, which has led to a sharp drop in steel exports from Taiwan. As a result of supply cuts, international steel prices increased significantly in the second quarter. After the recent rally, international steel prices have entered a high but limited trend, while market sentiment remains mixed.

Meanwhile, in May, the company's carbon steel sales amounted to 673,561 tons, and in the period from January to May, carbon steel sales amounted to 3.21 million tons.

For the first five months, CSC's operating revenue was NTD. Operating profit amounted to 1.53 billion Taiwan dollars (48.06 million US dollars), which is 1.9 percent less than last year.