Machinery and steel stakeholders open communication channels to ensure material supply

State-owned China Steel Corporation passed an internal solution on Thursday to adjust steel sales for domestic and outbound markets to help Taiwan's machine tool industries maintain a consistent supply of raw materials.

Machine tools and the machinery industry were impacted by steel suppliers stocking up, causing price increases or even suppliers refusing to sell—meetings between the Industrial Development Bureau. Taiwan Steel & Iron Industries Association, CPC, and industry representatives were held to reach three agreements.

CPC will adjust ratios for domestic and outbound sales and adjust factory production plans to stabilize domestic steel demand and supply. The Taiwan Steel & Iron Industries Association, CPC, and Taiwan Machine Tool & Accessory Builders' Association have also set up a communications platform, which would enable stakeholders to open discussion channels in the future should similar issues arise again.

The news comes after machinery and machine tool suppliers have remarked how rising prices in shipping, raw materials, and shortages in both materials and labor, have made it difficult for them to profit. Industry experts had mentioned before the necessity to stabilize prices for critical materials.