Taiwanese steel giant CSC plans to increase production in the second quarter

China Steel Corporation (CSC) predicts its second-quarter production will grow about 2.5 percent from the previous quarter, driven by higher orders.

Analysts believe the increase in orders is being driven by China Steel's decision to raise its domestic wholesale prices for future contracts. At the end of February, China Steel announced a 0.37 percent increase in the price of its products for wholesale shipments from April to May this year, compared to March shipments, citing improved prospects for global demand with the arrival of spring.

CSC said its Q2 production would not be affected by the closure of its # 1 furnace from March 1 for annual maintenance, or similar operations scheduled for its # 2 furnace immediately after the first furnace reopens.

China Steel Corporation, announced that technical support for its first and second furnaces will be completed by the end of the second quarter. Therefore, all four of its furnaces will be commissioned in the second half of the year and will be fully operational to meet the growing market demand.

According to analysts, China Steel is expected to receive higher revenues in the second quarter due to its price regulation policy. The steelmaker accounts for more than 60 percent of its sales through domestic supply, backed by orders from last year.