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| Baosteel Ups Domestic Prices Of All Sheet Products For March Shipments |
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China's Baosteel Co Ltd applies price increases to all sheet products and price reduction to heavy plates in its notice to domestic customers on price terms of various steel products for March shipments, it was learned in Tokyo Tuesday. The price increases by the ton are Yn300 (US$44) each for HR coils and CR coils, Yn350 (US$51) for pickled HR sheets, Yn350 each for hot-dip galvanized sheets and electrolytic galvanized sheets, Yn200 (US$29) for tinplate, and Yn350 for non-oriented electrical sheets. The price reductions by the ton are Yn300 for commodity-grade heavy plates and Yn700 (US$103) for ship plates. As a result, it follows that the price increase of ship plates has hit a cumulative Yn1,000/ton (US$147) after an increase of Yn300/ton for February shipments. Baosteel is thought to have reduced the ship plate price for two consecutive months in reaction to a major change in the environment for China's shipbuilding industry. It is understood that the company's price increases of all sheet products for two consecutive months stem from two purposes. One is to correct an earlier excess fall in prices and the other to meet domestic market prices on the advance for various steel products. With the price increases for March shipments, Baosteel's asking prices of all sheet products will compare with the corresponding price practices of China's other major integrated steelmakers such as Wuhan Iron & Steel Group Corp (Wisco) and Anshan Iron & Steel Group Corp (Ansteel). As a result, it remains to be seen what sheet prices Wisco and Ansteel will opt to quote for March shipments. Indications are that Baosteel will determine what prices to seek in late February in what the company sells for April shipments onward. It is likely that China's domestic market conditions after the lunar New Year holidays (Jan 25-31) will become a major factor in whether Baosteel will opt for more price increases of sheet products. At present, local steel market conditions for building materials are on the rise thanks to the central government's economic stimulus measures. As to sheet products, though, main consuming industries such as autos and consumer electronics are still in the doldrums. Accordingly, Baosteel is likely to pursue more price increases of sheet products when demand from the auto and consumer electronics sectors begins to recover. |
| last modified : Mon 26 Jan, 2009 [10:46] |
