Baosteel raises plate prices for February deliveries

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.