Taipei, March 2, 2010 (CENS)--Rising prices and demand for steel products will enable China Steel Corporation (CSC), Taiwan`s largest integrated producer of steel products, to challenge NT$25 billion (US$781.25 million) in pretax earnings in the first half of this year.

Recently CSC raised the wholesale prices for its steel products to be shipped in April and May by 2.9%, or NT$612 per metric ton. Thanks to the price spike, the company will see an addition of NT$900 million (US$28.125 million) in sales in both April and May.

CSC noted domestic demand for steel products has recovered, reflecting the projection made by the Cabinet-level Directorate General of Budget, Accounting and Statistics (DGBAS) that Taiwan`s economic growth will reach 4.72% this year. In addition, the International Monetary Fund has recently raised worldwide economic growth projections to 3.9%, indicating the speed of the economic recovery is stronger than market expectations. Such emerging nations as those of the Association of Southeast Asian Nations will restore a 4.7% annual growth in overall economy this year.

According to statistics compiled by the market analyst Worldsteel, the worldwide consumption of steel products will increase by 9.2% to reach 1.206 billion metric tons, almost hitting the highest record in history. Furthermore, the price hike in such materials as coal and iron will help push up the prices for steel products.

An institutional investor believed CSC will see its monthly earnings reach between NT$4 billion (US$125 million) and NT$4.5 billion (US$140.62 million) in the first half of this year. As a result, the company is expected to cash in a total of NT$25 billion (US$781.25 million) in the first half of this year.

Dragon Steel Corporation, one of CSC`s major subsidiaries, has recently begun mass production. With the addition of the newly established production capacity from Dragon, CSC will see magnificent increase in both sales and earnings in the months to come.

(by Ben Shen)