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| Baosteel's Domestic Price Cuts For Dec Shipments |
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China's Baosteel Co Ltd has informed domestic customers of price reductions of several steel products for December shipments, it was learned in Tokyo Monday. HR coils are subject to a price reduction of as large as Yn1,000/ton (US$147), which is believet to have brought the new price into a level of US$500/ton before tax. The price reductions of other products by the ton are Yn900 (US$132) for CR coils, Yn700 (US$103) for hot-dip galvanized sheets, Yn900 for electrolytic galvanized sheets, Yn700 for commodity-grade heavy plates, and Yn900 for ship plates. But the sales prices are unchanged for non-oriented electrical sheets and tinplate. With Baosteel's price cuts for December shipments, it is likely that China's domestic market prices of steel products will decline in December as well, according to market sources. It is considered impossible even for major steelmakers such as Baosteel to play a leading role in stopping domestic steel prices from falling. Therefore, it remains to be seen when the Chinese government will respond with what economic measures to meet the current steel market conditions at home, believe Japan's steel industry sources. China's monthly exports of finished steel products decreased by 1,010,000 tons or 13.2% from a month ago to 6,670,000 tons in September 2008. Demand for steel products has begun to slacken in the world's various destinations for Chinese steel exports in the wake of each destination's deteriorating economic environment. Accordingly, Chinese steel exports are bound to face a drag on their growth, market observers point out. |
| last modified : Fri 24 Oct, 2008 [11:11] |
