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Home Steel News Taiwan’s CSC halts blast furnace to electric arc furnace conversion on scrap challenges & economic concerns
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Taiwan’s CSC halts blast furnace to electric arc furnace conversion on scrap challenges & economic concerns

23 Jun 2025 14:25 reported by Joy Liu

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Taiwan’s leading carbon steel producer China Steel Corporation (CSC) has temporarily paused its plan to convert a blast furnace to an electric arc furnace (EAF). The future of the project remains uncertain, with difficulty in obtaining scrap steel and a lack of economic viability cited as reasons for the slowdown in work.

Market participants attributed this pause to the steel industry's recent struggles. China's economic downturn led to 118 million tons of steel exports in 2024, pushing international steel prices down. Due to ongoing trade and tariff disputes, international steel prices in June hit a five-year low, causing losses for many steelmakers outside of China and the US. Besides, the high cost of mill upgrades without clear profit prospects has made EAF conversions less appealing.

However, domestic EAF steelmakers in Taiwan are relieved, as CSC will no longer compete for scrap steel, a key raw material for their rebar production.

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