Tang Eng Iron Works Co., Ltd., one of the main stainless steel manufacturers in Taiwan, said that the downstream buyers slowed down their purchasing in the first half of this year due to the inflation and interest rate hikes in many countries, predicting the market condition to resume gradually in the second half after interest rate hikes stop and market confidence recovers.

Tang Eng targets its production at 216,000 tons in 2023. However, the current capacity is being run at 80% only due to lower-than-expected demand in the first and the second quarter after China eased epidemic controls. Tang Eng will consider production cut plans cautiously based on the actual market condition.

In terms of raw materials supply, global metal supply has stabilized after China lifted its COVID-19 measure, coupled with a new capacity launch from China and Indonesia, the stainless steel market was expected to be stimulated. Global crude steel production was estimated to grow by 8.6% this year, reaching 60 million tons.