| The TEX Report Topics < Steel > | |
| HOME >> Topics List >> September, 2008 >> 24 (Wed) |
| China's Steel Market Prices Down For HR Coils, Other Items |
|
China's domestic market prices of steel products have fallen by Yn200/ton (US$29) as a whole this week for HR coils and other main products in the wake of a considerable price reduction across the board by Baosteel Co Ltd except heavy plates for November shipments, according to information made available in Tokyo. Baosteel has reduced prices of sheet products by Yn700-800/ton (US$103-118). Japan's steel industry sources keep close attention to Baosteel's domestic price cuts for November shipments as "a play for all or nothing." As the sources see it, the price cuts are intended to stop local market prices from falling. Baosteel' new price of HR coils translates into a level of US$735/ton, a price level that is higher by US$35 from the domestic market this week. The price level has recovered to what prevailed in the March-April period of this year when steel prices were on the rise. As a result, it follows that Baosteel has held down what the company charges to a level at which the company is forecast to fall into the red if there is a further decline in prices. In that context, China's steelmakers have begun to offer opposition in unison to Brazilian iron ore supplier Vale's requirement of an additional price increase in negotiated supply contracts for shipments to China. If the Chinese steelmakers concerned have approved the additional price increase, there is a possibility that they will end up operating in the red. As a result, they have started their moves to resist the Brazilian requirement, with the China Iron & Steel Association as their leader. |
| last modified : Mon 29 Sep, 2008 [11:15] |
