【SMM Steel】Taiwan's industrial production costs rise amid summer power and gas hikes

Published: Jun 5, 2026 16:19

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【SMM Steel】Taiwan's steel mills and manufacturers face higher operating costs with two utility hikes taking effect in June. CPC Corp raised industrial natural gas prices by an average of 5% on June 1 marking the second consecutive monthly increase. Taipower initiated its four-month summer electricity rates also on June 1 with industrial and commercial high-voltage users seeing increases from May 16. The peak consumption tier above 1000 kWh reached a record NT$8.86 per kWh. CPC said formula-based calculations would have justified a more than 50% hike but the increase was capped to protect industrial competitiveness. Taipower described the summer pricing as a seasonal mechanism to manage peak demand. The combined increases will raise production costs for energy-intensive sectors like steel.

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