Baosteel raises plate prices for February deliveries
SteelOrbis Shanghai
Based on its first quarter ex-factory price in 2006,
Baosteel raised its ex-factory prices of wide and heavy
plate for February 2006 deliveries by RMB 100/mt on Wednesday, December 28. So, the price of 15-40 mm thick and 2 to 3 meter wide Q235
plate increased to RMB 3,100/mt. The prices exclude taxes, and will be effective since December 28, 2005.
According to
Baosteel's staff, the following reasons contributed to the price hike:
1.
Baosteel adjusts prices of other products on quarterly basis, while it adjusts medium
plate prices on monthly basis. Therefore, market players are sensitive to the current adjustment.
2. The cost of heavy
plate is high as the
production line has been operated for a short period of time.
3.
Baosteel's heavy
plate production line is the newest among those in Asia. Furthermore
Japan and South
Korea restrict the export of their heavy
plate production. Besides,
Baosteel exports most of its heavy
plate products and therefore, its heavy
plate products are in short supply in domestic market.
Baosteel's current price hike will have hardly any influence on domestic market prices, as its heavy plates are sold to end users or for exports.