Taiwan’s steel coil market is entering a bullish phase as shrinking supply overrides weak demand. In spite of low buying interest, domestic circulation prices continue to hike due to rising production costs and high freight rates caused by Middle East tensions.

Import volumes for hot-rolled coils dropped by 30% month on month in January, as international offers stayed high. China's waning influence, tied to anti-dumping measures and export controls, further tightened the market. Therefore, hot-rolled and pickled coil prices climbed steadily, while cold-rolled products soon caught up, in line with the price levels seen in the pickled coil segment.

Market participants believe the combination of inventory gaps and aggressive domestic price hikes indicates a strong upward trend for the sector.