Taiwan’s China Steel Corporation (CSC) is expected to increase prices for the sixth consecutive month in June, with a single-month increase predicted to exceed NT$1,000 per ton, driven by rising energy, freight, and production costs.

Tight supplies in the Asian market provide support for these increases. However, end-user demand remains sluggish, causing distributors to adopt conservative procurement strategies. The local steel sector experiences high price levels with limited trading volume.

Some distributors liquidate inventory to maintain cash flow as buyers retreat. While the industry acknowledges the necessity of production cost pass-throughs, some participants express concerns regarding export competitiveness and desire a simplified pricing structure.

As the market enters a period of consolidation, future stability depends on whether end-user consumption recovers to balance the elevated expenses of steelmakers.