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| Ansteel To Up Steel Prices Sharply For Aug Shipments |
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It is likely that China's Anshan Iron & Steel Group Corp (Ansteel) will execute major price increases of HR coils and other steel products when the company gives its notice to domestic customers on the price terms of August shipments, according to market sources. China's Wuhan Iron & Steel Group Corp (Wisco) and Baosteel Co Ltd have already informed domestic customers of what the two companies charge for August shipments of their products. Ansteel, Wisco and Baosteel are major integrated steelmakers. There is a predominant view that Ansteel will price up HR coils by Yn500/ton (US$74) or more for August shipments. As to HR coils for August shipments, Wisco intends to execute a price increase of Yn240/ton (US$35) to Yn4,317/ton (US$644) after value-added tax, and Baosteel that of Yn500/ton (US$73) to Yn4,788/ton (US$704) after VAT. The former's new price translates into US$540/ton before VAT, and the latter's into US$599/ton likewise. By comparison, Ansteel's HR coil price for July shipments is settled at Yn3,814/ton (US$560) after VAT. The asking price translates into US$477/ton before VAT. Therefore, Ansteel needs to raise the HR coil price by Yn500-800/ton to meet Wisco's and Baosteel's HR coil prices for August shipments. By the same token, it is considered necessary for Ansteel to increase the CR coil price by Yn500/ton or more. |
| last modified : Wed 22 Jul, 2009 [10:28] |
