Baosteel price reduction smaller than expected
Baosteel announced on Tuesday, November 22, its price policy for the first quarter of 2006.
The largest decrease in finished steel products will be RMB 1300/mt ($161), while hot rolled sheet/coil will see a reduction of RMB 700/mt ($87) at most.
Broken down specifically, 3.0mm*1000mm*C SS400 prices will be decreased RMB 643/mt ($80) to RMB 2991/mt ($370), bringing its price with related taxes to RMB 3500/mt ($433). Cold rolled sheet/coil prices will be down RMB 800/mt ($99), with SPCC prices reduced a further RMB 500/mt ($62). This would mean a RMB 1300/mt ($161) decrease for 1.0mm*1000mm*C SPCC to RMB 4086/mt ($506), bringing its price with related taxes to RMB4780/mt ($592).
The decrease range of
Baosteels prices is smaller than market expectations. When the above-mentioned specifications are compared to similar products in the Shanghai market,
Baosteels ex-factory prices will be RMB 500/mt ($62) higher for hot rolled products and RMB 700/mt ($87) higher for cold rolled product, including taxes.
The hot rolled sheet/coil market in
China was stable today, November 22. Although cold rolled product prices decreased, prices of other products were not influenced by the price adjustment by
Baosteel.
Generally speaking, the lower-than-market expectation decrease of
Baosteel should be regarded a factor that will support the weakened market.
SteelOrbis Shanghai