Taiwan's finished flat stainless steel exports dip in Jul'24, shipments to S. Korea drop 14%

In July 2024, Taiwan's exports of finished flat stainless steel declined by 3%, totaling 75,337 tonnes (t) compared to 77,594 t in June. This marked the second consecutive drop following a two-year high of 88,700 t in May 2024. Despite this decrease, y-o-y exports saw a significant increase of 54% from 49,061 t.

For the January to July period of 2024, exports reached 470,041 t, reflecting a 5% growth from 447,404 t in the same period last year. Additionally, imports of 300 series stainless steel hot-rolled coils fell by 18.9% in July, amounting to approximately 58,300 t. Exports of this product dropped dramatically by 62.5% m-o-m to just 57 t, marking the lowest level since November of the previous year.

Typhoon Gaemi notably disrupted market activity in Taiwan in July, which likely contributed to the decline in shipments. Major stainless steel manufacturers reported that flooding from the typhoon led to a two-week production halt and significant delivery delays.

Country-wise shipments

Major importing countries that contributed to the decline of Taiwan's stainless steel finished flat exports are Italy, South Korea and Japan.

Italy: Taiwan's leading export market, accounting for 21% of total exports. Imports from Taiwan were 15,661 t in July, down 4% from 16,379 t in June.

South Korea: The third-largest importer, making up 9% of Taiwan's exports. Imports from Taiwan totaled 6,716 t in July, a significant 14% drop from 7,799 t in June. Additionally, South Korea's Ministry of Trade, Industry and Energy has initiated an anti-dumping duty investigation into stainless steel products from China, Indonesia, Taiwan, and Vietnam, following a complaint from POSCO. The investigation will assess whether to extend existing anti-dumping duties. Taiwan's 300 series stainless steel is a focal point, with a preliminary decision expected in October. If upheld, anti-dumping duties ranging from 7.17% to 25.82% could further impact Taiwan's stainless steel shipments to South Korea.

Japan: In July, Taiwan's exports to Japan fell by 9% m-o-m, reaching 4,680 t compared to 5,169 t in June. Japan represents approximately 10% of Taiwan's total exports. The decrease in demand from Japan was primarily due to currency fluctuations and reduced buyer interest during the holiday season. Additionally, Japan's factory activity showed modest contraction in July due to weak domestic and international demand and rising inflationary pressures.

Outlook

Looking ahead, the monsoon in July and August is expected to slow production and lead to increased maintenance activities at mills. These factors are likely to negatively impact exports of finished stainless steel products from Taiwan. However, a recovery in demand is anticipated later in 2024, particularly in the fourth quarter.