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Baosteel Also Left Its Domestic Prices Unchanged For Oct. Shipment
Baoshan Iron & Steel (Baosteel) of China seems to have noticed by 12th to leave its domestic prices of flat-rolled products unchanged for October shipment to each customer. As Wuhan Iron & Steel (WISCO) set out early this week in the vanguard to leave its prices of steel products for October shipment, now, two major blast furnace mills left their prices unchanged so that other blast furnace mills are also expected not to reduce their prices. The long slackness of the steel market is predicted to bottom out in September.

In the steel market in Shanghai, prices of hot-rolled steel coils rose by 100 to 150 CNY ($16 to 24) on 6th last week. On 7th, those of cold-rolled (CR) steel sheets did also by 250 CNY ($40). The distributors are seen to have moved to replenishment of inventory in haste possibly anticipating no price fluctuations of the domestic major mills. Prices of CR sheets are reported to have risen by 170 CNY ($27) in Guangzhou as well.

In China, the China National Development and Reform Commission approved last week the public investments of total one trillion CNY (about 12 trillion 400 billion yen) for construction of subways and ports in Chengdu and or Shanghai, high way in Jilin Province and so on as the measures to shore up the economy. A source observes that steel demand is estimated to become the scale of 6 million tons. Responding to such the governmental movement keenly, the steel mills seem to have announced their steel prices unchanged in order to have the steel prices recover.

Among the Japanese steel industry, there were the pessimistic views that the Chinese major mills like Boasteel would reduce their steel prices again in October shipment as the market prices in China continued to drop even coming into September. It is said that usually, steel prices in China rise from October to Chinese New Year, and therefore, WISCO's flattening out of its prices was perceived surprisingly but Baosteel's remaining the same of this time has been welcomed.

The problem is that the spot prices of iron ore are rising. It is said that its prices rose by $6 per ton even in a day. It can be viewed that some mills forced into the shutdown would resume production anticipating the price recovery of steel products. If that happens, as the state of over production will still continue, the continuation of crawling along the bottom of steel prices is concerned.
last modified : Wed 19 Sep, 2012 [11:37]
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