Anshan Iron & Steel Group Corp (Ansteel), one of China's major integrated steelmakers, has told domestic customers that the company intends to keep its domestic sales prices unchanged of various steel products for February shipments, it was learned in Tokyo late last week. Information is circulating, though, about the company's price increases of CR sheets in a range of Yn50 (US$7) to Yn230 (US$34) for February shipments.
Among China's major integrated steelmakers, Baosteel Co has already informed domestic customers of flat sales prices of various steel products for February shipments except a price increase of Yn200-300 for wire rods and a price reduction of Yn1,500 (US$221) for grain-oriented electrical sheets. Also, Wuhan Iron & Steel Group Corp (Wisco) is said to have given domestic customers its oral notice on flat sales prices across the board for February shipments. Therefore, Ansteel is thought to have virtually followed the cases of Baosteel and Wisco for February shipments.
China's three major integrated steelmakers are reported to have decided for flat prices of main products for February shipments on each company's judgment. The logic goes that it is inappropriate to price up what they sell before they negotiate for contract renewals of their raw materials imports. On the contrary, various customers are said to have concluded that the three major integrated steelmakers will execute a major price increase in what they sell from April shipments to meet the prospects of a considerable advance in the costs of their raw materials imports. It is considered difficult to forecast how far imports prices of blast furnace feed (iron ore and coking coal) will go up. But they could advance by the equivalent of beyond US$100/ton, given the current spot prices of blast furnace feed. |
