Chinese mills drop prices due to over supply in domestic market
Chinese mills have been suffering due to increase of supply in domestic market as a result of increasing domestic steel output and stocks of imported material at the ports. As a result of the situation some mills have opted to reduce their sales prices.
Baogang steel mill is the latest to announce price reductions. Accordingly the sales prices of the mill have been reduced as follows.
Product Price reduction per ton
Cold rolled coil RMB 300 (approx $36/mt)
Galvanized coil RMB 300 (approx $36/mt)
Pickled and Oiled RMB 700 (approx $85/mt)
CR full hard RMB 700 (approx $85/mt)
Electrolytic tinplate RMB 300 (approx $36/mt)
Prepainted RMB 800 (approx $97/mt)
Anshan Iron and Steel and
Baosteel had also announced price reductions of RMB 400/mt (approx $49/mt) and RMB 300/mt (approx $36/mt) respectively for cold rolled coils.