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| China's Major Steelmakers To Up Domestic Prices For Q3 Shipments |
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Indications are that China's major steel companies will increase their domestic sales prices of various steel products for shipments in the July-September quarter, according to information made available in Tokyo. In the case of Anshan Iron & Steel Group Corp (Ansteel), its domestic prices of products such as HR coils and CR coils for May shipments are much lower than the current market prices. As a result, it is considered almost certain that Ansteel will begin pricing up what it sells from June shipments. If the company has opted for a major price increase, it could have an impact on what other major steelmakers charge for July shipments. The other major steelmakers' domestic prices already in place for June shipments. Meanwhile, Baosteel Co Ltd is expected to give notice shortly on its domestic prices for July shipments onward. It is likely that the company will favor a small price increase of Yn100-200/ton (US$15-30) to forestall overproduction from China's domestic steel mills as a whole, believe Japan's integrated steelmakers. In the past, small and midsize steelmakers reacted with increased production one after another when domestic steel prices were on the advance, which resulted in a downturn of steel prices because of excessive nationwide production. Whether domestic steel prices will go up markedly in China depends on a shakeout of unneeded production facilities at home, experts point out. In this connection, the Chinese government has invoked emergency measures to limit lending for the domestic steel industry. Among other things, the measures are intended for demolition of small electric furnaces and converter as well as small blast furnaces with inside volumes of 300m3 or less. |
| last modified : Fri 22 May, 2009 [10:24] |
