According to informed sources, China's Baosteel disclosed on 10 July its domestic prices of steel products for August shipment. At this point, it is said to have raised the price of stainless steel plate, which has been included since July shipment, by 300 CNY ($46). The price of ordinary steel plate has been kept unchanged. Regarding sheet products, the prices of all items including hot-rolled steel coil (HRC) have remained unchanged from those for July shipment, except for the price of some grain-oriented electrical steel (GO) products, which was raised by 200 CNY ($31). The steelmaker's Qingshan (former Wuhan) plant has raised its prices of some GO by 200 CNY and kept those of all others unchanged, while the prices of steel products made at the Meishan plant have remained at the same level.|
The sources are observing that those prices indicate Baosteel's stance against either forcible markup or markdown under the current circumstances, where: (1) the steel market in China has been on a decline over the past three weeks; (2) uncertain relations are observed in international trade; (3) the prices of raw materials have also been on a decline; and (4) the market is under a demand trough.
Increases both in production output and stockpile have been of concern in China; however, after this decision of Baosteel towards unchanged prices for August, other major integrated mills are expected to follow suit, keeping their prices unchanged, with no markdown.