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China's Ansteel Cuts Domestic Prices For HR Coils, Other Items
China's major integrated steelmaker Anshan Iron & Steel Group Corp (Ansteel) has reduced quotations of some items such as HR coils and full-yard CR sheets while having raised those of galvanized sheets and non-oriented electrical sheets in its domestic price revisions of various steel products for October shipments, according to information made available in Tokyo.

As a result, the new price for HR coils is settled at Yn3,573/ton after value-added tax (VAT), down Yn230 (US$29). The new price before VAT translates into a level of US$385/ton, compared with the earlier one of US$414/ton.

By comparison, rival steelmaker Wuhan Iron & Steel Group Corp (Wisco) has already reduced its domestic price of HR coils by Yn500/ton (US$63) to an estimated level of US$420/ton for October shipments.

Ansteel's HR coil price reduction this time is believed to have considered Wisco's domestic price for HR coils. In this connection, it is likely that Ansteel's price spread of US$35 versus Wisco's asking price will enable Ansteel to outsell Wisco in HR coils. Accordingly, there is a strong possibility that Wisco execute revisions of its domestic prices anew for October shipments to fight Ansteel's price reductions for items like HR coils.

Ansteel's price revisions this time include a reduction of Yn350/ton (US$44) for full-hard CR sheets, a base price markdown of Yn200/ton (US$25) for colored sheets, a markup of Yn100/ton (US$13) for galvanized sheets for presses and deep-drawing presses, and an increase of the TMCP extra by Yn100 to Yn260/ton for heavy plates.
last modified : Tue 19 Sep, 2006 [10:34]
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