Baosteel's Q1 2007 HRC quotation to South Korea

SteelOrbis Shanghai In the negotiations between China's largest steelmaker Baoshan Iron & Steel Group (Baosteel) and the South Korean cold rollers, Baosteel is insisting on a $520/mt FOB Shanghai price level for its hot rolled coil for re-rolling exports to South Korea in the first quarter of 2007. The price is $10/mt higher than that of the previous quarter. However, cold rollers in South Korea are expressing their dissatisfaction with the price, and are even showing reluctance to accept a price level of $460/mt FOB. In a statement on the issue, the South Korean steelmakers declared, “As we all know global steel prices have been going down recently. Baosteel's prices should also be considered carefully according to the actual market situation. Therefore, Baosteel should revise its quotation for first quarter, 2007 shipments.”