Taiwan’s carbon steel producer China Steel Corporation (CSC) is returning to the domestic scrap market this April to boost production. Facing a surge in orders after raising hot-rolled steel prices by NT$1,200, CSC aims to increase output quickly by adding scrap directly into its converters.

This move alarms local electric furnace mills. CSC specifically targets high-quality scrap, a resource already in short supply locally.

With a heavyweight competitor entering the fray, smaller steel mills fear CSC will exhaust domestic stocks. This would force them to purchase expensive imported alternatives, which typically cost much more. Therefore, local producers are rightfully concerned about their operational costs and access to materials as they prepare for intensified competition.