Taiwan Metals Report Q3 2012
- ID: 2221435
- August 2012
- Region: Taiwan
- 38 pages
- Business Monitor International
The Taiwan Metals Report provides industry professionals and strategists, corporate analysts, metals associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Taiwan's metals industry.
The Taiwanese steel industry is bracing itself for a year of contraction in output as it faces increasingly hostile domestic and regional market trends. We expect 2012 production to decline to 21.8 million tonnes (mnt) from 22.7mnt in 2011. Aggressive property market cooling measures by the Chinese government has significantly affected the prospects of Taiwanese steel manufacturers. This situation is also exacerbated by the current glut in the steel market and the rising protectionist tendencies of European economies. Looking at the sales of the major Taiwanese steel manufacturers from January to May 2012, it has not been a good year so far.
Taiwan's output of basic metals rose by 5.3% year-on-year (y-o-y) in 2011, while its fabricated metal products output grew by 8.4% on the back of a 12.9% y-o-y rise in the value of exports to US$30.65bn.
Taiwanese crude steel production grew 15.4% y-o-y to 22.7mnt in 2011, with the World Steel Association (WSA) revising up its estimates. The outcome was higher than the 22.4mnt forecast in BMI's previous quarterly report and was assisted by healthy export orders -the value of basic metal and metal product export orders rose 12.9% y-o-y to US$30.65bn in 2011, according to data from the Taiwan Ministry of Economic Affairs. However, Taiwan's leading steelmaker, China Steel Corporation (CSC), reported output of 8.7mnt in 2011, down 9.9% y-o-y, while its sales volume reached TWD234.4bn (US$7.8bn), up 8.8% y-o-y.
The first half of 2011 was characterised by strong growth in production and consumption, only to see it disappear and lose momentum by the second half. Nevertheless, Taiwan's Metal Industries Research & Development Center revealed that the country's steel industry achieved 7.1% growth in 2011, with the total output for the industry reaching TWD1.5trn, significantly above the 2010 value of TWD1.4trn.
Exports totalled TWD560bn in 2011, a 9.9% increase from 2010 levels of TWD510bn. The recovery in 2011 is unlikely to be repeated in 2012 given weak May YTD sales levels among the country's top steel producers. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 8
Taiwan Business Environmentl SWOT 8
Industry Forecasts 9
Steel: Weak 2012 For Taiwan Steel 9
Table: Taiwan's Steel Industry 11
Macroeconomic Outlook 12
Table: Taiwan – Economic Activity 15
Commodities Forecast 16
Steel To Average US$500/tonne In 2012 16
Table: BMI Steel Forecasts 16
Table: Steel Price Data, (US$/TONNE) 21
Monthly Metals Update 21
Steel Prices Have Topped Out 22
Copper: Relative Outperformer But Still Weak 24
Tin To Outperform 25
Aluminium: Substantial Support Around US$1,900/tonne 26
Nickel: Oversupply Pushing Prices Lower 27
Break Of Support On The Cards For Lead 28
Zinc: Downward Trend Continues 29
Table: Select Commodities – Performance & BMI Forecasts 30
Competitive Landscape 31
Company Profiles 33
China Steel Corporation 33
Table: China Steel Corporation - Financial Results 36
BMI Methodology 37
How We Generate Our Industry Forecasts 37
Cross Checks 37