cens logo

CSC of Taiwan Chalks Up 54% Monthly Growth in Pretax Profits of NT$346 M.

Sep 18, 2015 | By Steve

CSC benefits from utilization of cheap raw materials in production to end August with pretax profits of NT$346 million. (photo courtesy of UDN.com)CSC benefits from utilization of cheap raw materials in production to end August with pretax profits of NT$346 million. (photo courtesy of UDN.com)
Mainly benefiting cost savings from utilization of in-stock raw materials procured earlier at lower prices, Taiwan-based China Steel Corp. (CSC), the island's largest steelmaker by size, therefore chalked up a 54-percent growth in pretax profits of NT$346 million (approximately US$10.81 million) in August over July, according to the firm's latest financial statement.

Contrasting the phenomenal profit growth, CSC's revenue for the same month, however, showed a month-on-month decline of 5.48 percent, or 26.46 percent year on year (YoY), to NT$22.628 billion (US$707 million), mainly due to persistently slack global market demand as well as weak steel price. For January-August, the firm's cumulative revenue stood at NT$200.935 billion (US$6.27 billion), down 18.32 percent from the same period of last year.

Institutional investors point out that CSC's raw materials, mainly coking coal and iron ore, used in production during August were bought earlier for around US$100 lower per tonne than those used in July, hence offsetting the impact of low steel prices to greatly drive its pretax profits as result.

Despite such encouraging profit growth, market observers generally opine that the prospects for CSC remains grim for a number of reasons, including slowing economy in emerging countries as China, India's souring investment environment and sustained weakness in the global steel market.

For one thing, India is going to impose a 20 percent duty on imported hot-rolled steels as part of its effort to protect local industries, a disappointment to the Taiwanese steelmaker, especially when it has been planning to expand its manufacturing hub of electromagnetic steel sheets.

The hub was started up this January and cost NT$7.1 billion (US$225.39 million) to construct. Spread over 60 hectares, it can turn out 200,000 tonnes or so of electromagnetic steel sheets yearly, mainly targeting Indian makers of motors and transformers ranging from the low to high end.

At the opening ceremony for the plant, CSC's chairman J.C. Tsou confirmed that the company will step up assessing the feasibility of putting aside about NT$25.6 billion (US$812.69 million) more to set up another plant of cold-rolled and galvanized steel coils with planned annual output of 1 million tonnes at the hub, provided the Indian government lifts duties levied on imported raw materials. Nevertheless, market observers note that India's intention to impose duties on imported hot-rolled steel may force CSC to sideline the expansion project, given that the hub imports all the needed materials from CSC's subsidiaries in Taiwan.

Another disadvantageous factor, industry insiders say, is that CSC's products exported to India are subject to a 10 percent tariff for the time being, compared to less than 1 percent levied on the same products imported from Japan and S. Korea, mainly because Taiwan has failed to forge a free trade agreement with India to further dampen future prospects for CSC in the lucrative market.

CSC's 2015 Revenue by Month
Year on Year Growth Rate
Cumulative Revenue
Year on Year Growth Rate
NT$29.403 Bn.
NT$29.403 Bn.
NT$23.583 Bn.
NT$52.986 Bn.
NT$27.816 Bn.
NT$80.803 Bn.
NT$25.352 Bn.
NT$24.191 Bn.
NT$24.018 Bn.
NT$23.940 Bn.
NT$22.628 Bn.
Source: Market Observation Post System

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...