Feng Hsin Steel Chairman Lin Da-jun: Shifting to High-Value Products, Expects Double-Digit Growth in Bar/Wire Rods in Q3

Central News Agency, Taichung, May 27. Feng Hsin Steel Chairman Lin Da-jun stated that due to the cooling domestic housing market and declining demand for residential projects, the company is no longer prioritizing rebar shipment volume. Instead, it is prioritizing resources toward higher-value-added bar and wire rod products to enhance overall operational efficiency. He expects performance in the second half of the year to be no lower than the same period last year. Feng Hsin Steel held its shareholders' meeting today and approved a cash dividend of NT$3.3 per share. Lin noted that according to building permit applications in Q1, pure residential projects decreased by about 20%, impacting rebar demand. However, ongoing factory construction in the semiconductor and ICT sectors continues to support some rebar consumption. Looking ahead to the second half, Lin said the company will not pursue volume for rebar, but will satisfy existing customer needs while allocating resources to high-value products like bar and wire rods to improve profitability. In particular, with a low base from last year, bar and wire rod performance is expected to grow by double digits in Q3. Regarding China's steel production cuts, Feng Hsin executives noted that China's crude steel production has decreased by about 4% in the first four months, and exports have also fallen by 10%, which helps improve international rebar price spreads and benefits Feng Hsin's operations. Regarding carbon fees, Lin stated the company is adopting voluntary reduction measures, having cut emissions from 700,000 to 600,000 tons.