Taiwan steel mills will be affected by rising electricity bills and cost impact

It is understood that Taiwan's steel mill manufacturers are expected to be hit by increased production costs as electricity tariffs are raised starting this month.
Taiwan's Ministry of Economic Affairs said industry electricity tariff increases range from 7% to 25%, effective from April to September, depending on electricity consumption. "Industrial power consumption will be adjusted based on operating conditions and consumer groups, taking into account power saving factors," the statement said. Hainan Xia understands that for major industrial electricity users whose annual electricity consumption exceeds 500 million kilowatt hours and whose average electricity consumption has shown an upward trend in the past two years, 15-25% will be adjusted based on annual electricity consumption.
Industry insiders in Taiwan believe that under such circumstances, Taiwanese steel mills may be more interested in "semi-finished product procurement" rather than raw materials. "If scrap steel prices remain stable or even rise slightly, it will be more economical for Taiwanese producers to import steel billets. Taiwan insiders say that it will be difficult for most steel mills in Taiwan to translate higher production costs into finished steel prices. , so Taiwan steel mills will face new challenges starting from this month, and at the same time, traders & raw material suppliers around the world will also need to make new arrangements and responses.

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