Taiwan’s China Steel Corporation (CSC) faces expectations of a sixth consecutive monthly price hike in June, with possible increases exceeding NT$1,000 per ton.

Since January, domestic sheet prices have risen by NT$3,100 to 3,400 per ton. Production expenses remain high due to raw material prices, volatile energy costs, and freight rates connected to Middle East instability. Besides, the implementation of the European Union's Carbon Border Adjustment Mechanism (CBAM) forces steel manufacturers to invest in low-carbon processes, adding pressure to production costs.

CSC seeks to rectify the disparity between raw material inputs and hot-rolled product prices. Market participants are cautious regarding these upward trends, as end-user demand shows limited recovery. The sustainability of inventory replenishment is a key factor in determining whether these price rises stabilize during the second quarter.