Baosteel announces Q3 2007 prices

SteelOrbis Shanghai

On May 22, Shanghai-based Baosteel issued its third quarter price list, with prices in general remaining at second quarter levels. The price of semi finished steel has increased by a relatively big margin of RMB 200-1,300/mt ($26-170/mt), while some wire rod categories were slightly up by RMB 100-200/mt ($13-26/mt). A price hike was also seen in wide and heavy plate and in electrical steel. Flats prices remained constant in general, while prices for galvanized coils, color coated coils and steel pipes moved down. The details are as follows:

I. Semi finished steel

1. Slabs (except those in table 1): The price of die steel increased RMB 500/mt ($65/mt); additional RMB 150/mt ($20/mt) was added to the above levels for 120 mm < thickness ≤200 mm. The price of structural steel, welded structural steel, HR and CR low carbon steel increased RMB 500/mt ($65/mt). An additional RMB 800/mt ($105/mt) was added on this basis for structural steel of thickness ≤450 mm. Finally, the price of forging steel increased by RMB 200/mt ($26/mt).

2. Billets: The price increased RMB 300/mt ($39/mt); an additional RMB 150/mt ($20/mt) was added to super low carbon steel on this basis.

3. Round billets (except those in table 1): The price increased RMB 200/mt ($26/mt).

4. Prices in table 1 will be executed for all alloy products. For alloy extras, the table 1 prices will be in effect for July.

5. Q2 prices are still effective for other semi finished products.

Table 1 Q3 price adjustment for semi finished steel (Unit: RMB/mt)

II. Wire rod

1. Cold heading carbon wire rod increased RMB 200/mt ($26/mt), while the price of cold heading alloy remained unchanged.

2. The price of pre-stressed steel stranded wire rod increased RMB 100/mt ($13/mt).

3. The price of super low carbon wire rod increased RMB 200/mt ($26/mt).

4. The second quarter prices are still in effect for wire rod for steel curtain stranded.

5. The price of welded wire rod BH08MnMoTiB increased RMB 200/mt ($26/mt), while Q2 prices are in effect for the other specifications.

6. Q2 prices remain effective for all other products.

III. Hot rolled

Q2 prices are still in effect.

IV. Hot rolled pickled & oiled

Q2 prices are still in effect.

V. Cold rolled

Q2 prices are still in effect.

VI. Full Hard coil

1. Prices for June are still effective in the third quarter.

2. The price increase for widths in the range of 1,021-1,200 mm was cancelled.

VII. Hot dip galvanized

The price of DC51D+Z decreased RMB 300/mt ($39/mt), while Q2 prices are still in effect for the other specifications.

VIII. Aluminum-zinc

Q2 prices are still in effect.

IX. Electro-galvanized and fingerprint-resistant electro-galvanized

1. Q2 prices are effective for electro-galvanized products.

2. A further upward adjustment of RMB 600/mt ($78/mt) was made to fingerprint-resistant electro-galvanized products.

X. Color coated

Prices for June are still effective in July.

XI. Wide and heavy plate

1. The base price saw an overall increase of RMB 300/mt ($39/mt).

2. Prices for other steel varieties, grades and processes have remained at the previous levels.

XII. Electrical steel

1. Prices increased RMB 100/mt ($13/mt) for medium specifications (B50A470-B50A600, B65A600, B35A440-B35A550).

2. Prices increased RMB 150/mt ($20/mt) for low specifications (B50A700-B50A1300, B65A700-B65A1600).

XIII. Electrolytic tin plate

Prices saw an overall downward adjustment of RMB 100/mt ($13/mt).

XIV. Steel pipe

1. Common pipe: 35CrMo and 34CrMo4 decreased RMB 200/mt ($26/mt), while Q2 prices are effective for other specifications.

2. Oil pipe and boiler pipe have remained constant at the previous levels.

3. Q2 prices are still valid for ERW welded pipe.

All the above prices exclude 17 percent VAT and are in effect as of May 22, 2007.