Taiwan’s China Steel Corporation (CSC) is expected to raise its June prices by roughly NT$1,000 per ton as Asian mills build strong price support. Rising raw material costs and geopolitical tension in the Middle East keep coal and iron ore prices high, increasing production expenses. Therefore, South Korean mills recently raised export offers for hot-rolled coils to record levels to Taiwan’s buyers.

With Vietnamese mills also poised to increase rates, import competition in Taiwan is fading. While CSC must balance high costs against the export competitiveness of downstream fastener and tool makers, many local processors favor a price hike to help raise their own product quotes.

Market participants believe that if CSC adopts a moderate increase, such a move could reflect costs and potentially stimulate buying interest for the second half of the year.