Taiwan's Ministry of Economic Affairs announced to raise the electricity price by 15% for the electric furnace steelmaking industry.

Taiwan's government has frozen electricity prices for many years. Some steel mills estimated an increase in electricity price might be about 8% to 10%, but it jumped by 15%, more than original expectations.

Regarding this electricity price adjustment, some steel industries believed that the high inflation has led to a slowdown in the demand for steel products. The performance of the second quarter was also not good.

After the electricity adjustment, the manufacturers will suffer a lot of pressure on costs. It was expected that some steel mills might cut production or upgrade the production facility in order to lower the electricity cost.