【SMM Steel】Taiwan wire industry urges CSC to hold prices in Q3

【SMM Steel】Australian steelmaker BlueScope has announced that its new Metal Coating Line 7 at Erskine Park, NSW, has entered the commissioning phase. The 415 million AUD project will add 240,000 tonnes of annual ZINCALUME® steel capacity. The new line will significantly enhance coating capabilities and support premium brands including TRUECORE® and COLORBOND®. Production is expected to ramp up progressively through 2026. The investment forms part of BlueScope's broader strategy to strengthen Australia's domestic steel supply chain and improve long-term supply reliability for high-value steel products.

【SMM Steel】Combined shipments from CSC and Dragon Steel fell to 956,000 tonnes in May due to scheduled production line maintenance, ending two months of growth after hitting a 27-month high in April, but remained above 900,000 tonnes for the third consecutive month. Domestic demand rose 11,000 tonnes to 554,000 tonnes driven by peak construction season for AI factories and public projects, while exports dropped 30,000 tonnes to 402,000 tonnes. CSC delivered 673,000 tonnes, while Dragon Steel increased to 283,000 tonnes. CSC Vice President of Sales expects a June rebound, citing rising raw material costs driving restocking, reduced low-priced Chinese competition, and strong infrastructure demand in India and SE Asia.

【SMM Steel】Taiwan's CSC is expected to raise July HRC prices by 300-500 TWD/tonne, but faces resistance from downstream buyers as Asian HRC prices have recently dropped due to currency depreciation, trader short-selling, and falling Chinese markets. Local buyers argue that raising Taiwanese prices during an Asian downturn creates an awkward mismatch. They propose a compromise: a nominal price increase offset by private discounts. Market participants note Taiwan operates at its own pace, especially after AD duties on Chinese HRC, and suggest CSC focus on completing AD measures against Chinese CR steel to secure long-term domestic stability.