As Reported by China Economic News; to meet demands from its local clients in downstream sectors of fasteners, hand tools, etc., China Steel Corp., the largest steelmaker in Taiwan, has moved to expand supply of high-end wire rods to displace imports of such steel, according to industry sources. 

 

China Steel`s subsidiary Dragon Steel Corp., located in Taiwan`s central county of Taichung, has already activated its newest blast furnace to raise its maximum steel output to 2.5 million metric tons a year. Meanwhile, the company has also had its electric arc furnace originally set for production of steel billets switched to steel wires and rods in line with China Steel`s strategy of boosting production to replace up to one million metric tons of imported wire rods. 

 

After the electric arc furnace, which could turn out 600,000 tons of section steel and 400,000 tons of steel billets a year in the past, is set for steel wires and rods, Dragon Steel is expected to further boost its annual output of low-carbon steel wires and rods to 100,000 metric tons, which, in other words, will allow China Steel to allocate some of its existing capacity for higher-end wire rods. 

 

Industry insiders note that the production adjustment is believed to mutually benefit China Steel and its clients, for it will not only secure the steelmaker`s downstream clients more stable, economical supply of alloy steel and free cutting steel, but also help to expand its market shares to boost sales revenue in the future. 

 

Noteworthily, Taiwan`s fastener makers are upbeat about the news, especially when some, including Chun Yu Works & Co., Ltd. and San Shing Fastech Corp., have tried to go upmarket by dedicating themselves to production of higher-end fasteners used by automakers, medical instrument manufacturers and aircraft builders in recent years, and hence increasingly demanded finer materials. 

 

According to China Steel`s statistic compilation, Taiwanese fastener makers totally ordered 236,700 metric tons of various wire rods in the third quarter alone, accounting for 54% of the total ordered during the period and hitting a 3-year high. While reflecting the industry`s prosperity, the increasing demand has also intensified insiders` worries about supply shortage. 

 

by Steve Chuang)
Source: China Economic News