02.12.2001
Things looking up for China Steel

• China Steel (CSC, 2002 'Zhong Gang') expects to increase steel prices in 2Q00 following the decision by US steel companies to up their own prices in March.

• Earlier this year, CSC set a conservative 2001 revenue target of NT$92b, with EBT at around NT$17.2b. Supported by the anticipated go ahead of Taiwan's 4th nuclear power plant project and ensuing steel price hikes, we expect CSC to beat this target.

• CSC subsidiary China Steel Structure Co. Ltd. (2013 'Zhong Gang Gou') reported Jan. revenues of NT$370m, 23.5% YoY growth. The company has received orders up to July and further contracts are being negotiated.

• China Steel Structure expects steel demand to show a strong rally if construction of the nuclear power plant goes ahead.

BennyLo@Primasia.com +886-[0]2-2547-8869