Angang's December price increase provide boost for market

SteelOrbis Shanghai On November 3, Anshan New Steel (Angang) announced December shipment ex-factory prices for some of its products. The details are as follows: 1. Hot rolled coils The prices increased RMB 150/mt ($19). With this latest adjustment, the new price of 3.0 mm thick Q235 is at RMB 3,400/mt ($432), while that of 5.5 mm is at RMB 3,270/mt ($416). 2. Cold rolled coils The price remains unchanged, so the ex-factory price of 1.0 mm thick St12 cold rolled sheet is still at RMB 4,000/mt ($508). 3. Medium plate The price of common carbon medium plate increased RMB 50/mt ($6), while that of shipbuilding plate increased RMB 100/mt ($13). After the price rise, the ex-factory price of Q235 20mm medium plate now stands at RMB 3,170/mt ($403). 4. Galvanized and color coated products Prices remain unchanged compared to the previous levels. All the above prices exclude taxes (17 percent value-added tax) and are effective as of November 3, 2006. Despite the overall downward tendency in the Chinese market, Anshan New Steel has hiked its ex-factory prices of hot rolled coils and medium plate for December - mainly because they have received many orders for December both from home and abroad. Meanwhile, Anshan's increases may also be regarded as providing support for the current market price. If Anshan New Steel had lowered their ex-factory prices, market confidence would have been greatly affected, causing a further price decline. However, sources report that many mills do not have as good export prospects for December and for the new year as Baosteel, Anshan New Steel, Wuhan Steel and other leading steel mills. This fact represents a big pressure on the future domestic market.