China Steel : Price Announcement for Domestic Sales of Fourth Quarter/October shipment of 2023

About this update from China Steel Corporation

September 14th, 2023, China Steel Corporation (CSC) hereby announces following statement, regarding the forecast and sales price adjustment for the fourth-quarter/ October shipment of 2023. The central bank of Europe Union countries and that of the United States raised interest rates and reduced asset purchases to curb inflation, resulting in higher financing costs and lower corporate investment. However, as the end of Fed rate hike cycle nears, economic outlook is gradually improving. According to the August forecast by The Economist Intelligence Unit (EIU), global GDP growth for 2023 has been revised up by 0.1% to 2.3% since July. The United States sees mild economic expansion, while Europe and Japan remain stable. Taiwan's economy remains challenging, but the government's stimulus measures targeting domestic demand help alleviate export declines. These measures include extended tax reductions on commodities and energy, expanded tax refunds for energy-efficient appliances, and stabilize the housing market to ensure price stability and boost consumer confidence. The Directorate-General of Budget, Accounting, and Statistics, Executive Yuan forecasts Taiwan's economic growth rate in the fourth quarter of this year to reach 5.59%, and for the year 2024 to exceed this year's rate (1.61%) at 3.32%. Global steel demand hits bottom in late June this year and begins to recover, yet, in August, China experienced a major crisis in the real estate sector, prompting a series of measures by Chinese authorities to stimulate the weak property market. Rebuilding demand surfaces in China after flooding, with new special bond projects sought to be issued to strengthen the infrastructure developments. In August, the manufacturing PMI index in the United States showed signs of improvement. Specifically, the production index returned to expansion mode. It is anticipated that once inventory adjustments are completed, there will be an increase in demand to replenish stock, further driving an upward reversal in steel prices. The fourth quarter marks the year-end holiday season for European and American markets; the shortage of semiconductor chips eases, resulting in record high automobile production. According to MarkLines, global automobile production in the first seven months of this year hit 50.03 million vehicles, marking a 10% YoY increase. Taiwan's automobile market shows...

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