TAIPEI (Taiwan News) — Chun Yuan Steel President Hung Shih-liang (洪士良) said Monday the company expects an improved steel market this year.
Hung said the company's orders are booked through next year. He added that it would expand orders from the non-engineering sector this year, including steel for robotic arms in manufacturing plants, per CNA.
The company's non-engineering orders also include supplying steel plates to the automotive industry, with clients including Toyota, Ford Motor, and Yulon Motor, Hung said. Additionally, it provides materials for electric vehicles produced through a Yulon-Foxconn collaboration.
The company will continue supplying steel materials for engineering projects, including electronics factories, commercial office buildings, urban renewal, and public works, Hung said.
Chun Yuan Steel's product sales volume last year was led by cold and hot rolled steel plates, accounting for 54.1%, followed by construction steel structures at 29.7% and special steel products at 6.9%. The company's revenue exceeded NT$21.83 billion (US$715.4 million) last year, with engineering-related orders accounting for 40% and non-engineering orders 60%.
In March, the US government imposed a 25% tariff on imported steel and aluminum, primarily to protect domestic industries and reduce reliance on foreign imports.
Despite the 25% tariff on US exports imposed since 2018, Taiwan's steel exports to the US have continued to grow in recent years. Hung predicts the US’s new tariff policy could lead to stronger demand for Taiwan's steel exports to the country.
According to the Taiwan Steel and Iron Industries Association, Taiwan's steel exports to the US grew from 1.46 million tonnes in 2019 to around 1.6 million tonnes last year, with export value rising from NT$92.3 billion to NT$117.3 billion. Although exports fell to 1.24 million tonnes in 2020 due to the COVID-19 pandemic, the overall trend has been upward.
