Major Asian steelmakers, including Taiwan’s China Steel Corporation (CSC), China’s Baosteel, and Vietnam’s Hoa Phat, initiated price hikes for early 2026, showing strong market confidence.

This optimistic trend was due to tightening global regulations and favorable economic conditions. The European Union’s implementation of the Carbon Border Adjustment Mechanism (CBAM) and a nearly 50% reduction in steel import quotas effectively curb low-priced dumping.

Besides, China intensified export controls through licensing requirements and tax verification systems to stabilize global supply. Rising raw material costs, a strengthening Yuan, and expected interest rate cuts in the US further support higher valuations. With the improvement in the supply-demand balance, these factors combined will enable the steel industry to return to profitability throughout the year.