Since July 1, the electricity prices of high-voltage and ultra-high-voltage industrial users have been raised by an average of 15%, making a great impact on the operation of the steel industry.
According to sources, the "Ministry of Economics" in Taiwan held an interim meeting on the review of electricity price rates on the June 27, and decided to increase electricity prices for major electricity consumer. Since July 1, the electricity prices of high-voltage and ultra-high-voltage industrial users have been raised by an average of 15%, making a great impact on the operation of the steel industry.
Lin Yishou, chairman of Yelian Iron & Steel, a leading stainless steel manufacturer, said that a 15% increase in electricity prices at one time was "unbelievable". Major electric furnace manufacturers Yelian, Tang Rong, Fengxing, Weizhi and Yehui all said that their operations would be affected. When Taipower's increase plan is released, the impact will be further actuated.
The steel industry emphasises that it is uneasy to pass on the cost by raising the steel prices in the short term amid the sluggish market. Moreover, the rise and fall of the steel prices must depend on the international market conditions and the fundamentals.
The only way to reduce the impact is to increase the self-sufficiency rate of power supply and save electricity costs by saving energy, developing green electricity, and making use of off-peak hours to produce steel.
