China Steel Corp. reported a pre-tax loss of NT$840 million ($27.45 million) in July, a significant improvement from June’s NT$1.58 billion shortfall, as increased renewable energy output and mining dividends helped offset persistent weakness in steel markets.
Taiwan’s biggest steelmaker attributed the reduced loss to improved gross margins and higher non-operating income from its offshore wind subsidiary and mining investments. The company’s wind farm off Changhua County generated 46.21 million kilowatt-hours in July, more than double the previous month’s output.
Despite the improvement, the steelmaker accumulated NT$2.41 billion in pre-tax losses during the first seven months, reversing a NT$4.08 billion profit from the same period last year. The reversal underscores the industry’s struggle against Chinese steel dumping and weak global demand.
Taiwan imposed provisional anti-dumping duties of 16-20% on Chinese hot-rolled steel products in July after imports surged 50-fold over five years. Management warned that export pricing remains challenging while domestic sales are only beginning to recover from cyclical lows.
Company executives expressed cautious optimism about August but declined to predict when losses might turn positive, citing ongoing market uncertainties and the recent expansion of U.S. steel tariffs affecting downstream customers.
