Chun Yu Works & Co.,Ltd. (hereinafter referred to as “Chun Yu”, stock code: 2012), a major fastener wire manufacturer under the Taiwan Steel Group, announced today (10) that its self-consolidated revenue in December 2021 will be NT$1.059 billion, compared with 2020 The year-on-year growth rate was 25.11%; the cumulative consolidated revenue was 11.811 billion yuan, an increase of 46.64% over the same period last year. Chunyu’s revenue in 2021 exceeded 10 billion yuan for the first time, showing that with the increase in production capacity and the adjustment of product structure, it will bring positive benefits to performance, and it will become the norm for annual revenue to exceed 10 billion yuan in the future.
Chun Yu said that the decline in revenue in December 2021 compared to the previous month was mainly due to the impact of the upcoming Christmas, New Year and Lunar New Year holidays. Overall, the three major production bases will all deliver impressive results in 2021. Taiwan’s annual revenue will grow by 81.1% compared to the same period of the previous year, the mainland will grow by 31.1%, and Indonesia will grow by 18.8%. Among them, Taiwan has the largest growth rate. The expansion of production capacity has been planned in advance, and the equipment has been built successively.
Looking forward to the steel market in 2022, although Sinosteel cut the price of rods and wires by 500 yuan in the first quarter, this is a short-term consolidation. According to the new “Global Economic Outlook Report” released by the International Monetary Fund (IMF) in 2021, the global economic growth rate in 2022 is expected to be 4.9%, which is lower than the growth rate in 2021 and still higher than the growth level before the epidemic . In the long run, steel prices will tend to rise but never fall. In addition, big steel countries are actively promoting carbon neutrality. The mainland took the lead in reducing steel production. South Korea and Japan have successively closed blast furnace plants and converted them to electric furnace plants. Steel manufacturing costs are bound to rise. In addition to the US$1.2 trillion infrastructure support demand in the United States, China’s 1.46 trillion yuan infrastructure funds are expected to be in place after Q1 in 2022. With the huge demand for infrastructure, it is estimated that after the new year, it will slow down in Q2, and the explosive growth of steel demand will appear. In addition, the EU imposes anti-dumping duties on mainland fasteners, which is beneficial to Taiwanese fastener companies selling to Europe.