China Steel Corporation said that it has signed a strategic alliance agreement with Sinosteel Corporation as the Taiwanese market slowed. The companies will strengthen cooperation in areas including production, trading, engineering and management.
Mr Peter Tzeng, a Taipei based analyst at Polaris Securities Co, said that "CSC probably wants to expand in the China market through Sinosteel. The Taiwan market is saturated, so the company must develop overseas markets."
Taiwan accounted for 67% of CSC's sales volume in July 2011, down from 71% a year earlier. Taiwanese base metal producers cut output by 7.2% in June from the previous month, as volatile steel prices damped purchases.
CSC announced in July 2011 a 1.7% cut in domestic prices for September 2011 contracts, after a 4.2% decline for the July to August 2011 period