Feng Hsin Steel Co., Ltd., a leading long steel producer in Taiwan, reported that its third-quarter shipment volume fell to 346,000 tons, with wire rod shipments down 17% from the previous quarter. The company noted that although it has received some urgent orders from downstream customers recently, the increase reflects a short-term rebound rather than a market turnaround.

At its Investor Conference on November 20, Feng Hsin said total shipments in the third quarter declined by 18% from the second quarter and 10% year-on-year. Rebar shipments dropped by 22% quarter on quarter, mainly due to electric-arc furnace maintenance and higher summer power costs. Wire rod shipments were also affected by tariffs and supply chain restructuring. In the first three quarters, total shipments of its three major products reached about 1.13 million tons, down by 5% year-on-year, with section steel the only category showing growth.

Despite lower shipments, gross margin in the third quarter rose to 12.4%, compared with 11.4% in the second quarter and 8.8% a year earlier, driven by cost-reduction efforts. Feng Hsin said demand in the fourth quarter may remain weak due to a sluggish housing market and slower factory construction. The company added that downstream screw makers face poor orders, which will further impact Feng Hsin’s shipments, and recent urgent orders from U.S. buyers represent only a rebound, not a full recovery.