Given the weaker market demand and declining iron ore prices, Taiwan's China Steel Corp (CSC) announced it would drop domestic steel prices for deliveries starting next month by 5.61 percent.
According to corporate data, China Steel has decreased domestic steel prices for the third consecutive month, with decreases of 2.1 percent last month and 2.23 percent this month.
The steelmaker claimed that rising anxiety about a global recession, skyrocketing inflation, and the Western summer vacation are all contributing to the already weak demand for steel over the previous few months, which was brought on by China's COVID-19 lockdown restrictions, Russia's invasion of Ukraine, and the Southeast Asian monsoon season.
Beijing is progressively easing its restrictions, but the Chinese economy has not recovered as quickly as anticipated, according to a statement from the business.
As customers decrease spending out of concern about a recession, Chinese manufacturers have grown increasingly cautious about demand, it said.
Prices of hot rolled steel products produced in Europe, the US, and Asia have fallen to their lowest levels in the previous 12 months, CSC said, driven down by weak demand and cheaper raw material prices.
Since many steelmakers, including Nippon Steel Corp. and ArcelorMittal SA, have started reducing production, the business continues to believe that global steel prices will bottom out later this year.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.