WISCO Q1 price cut details

WISCO Q1 price cut details

SteelOrbis Shanghai Based on its December prices, Wuhan Steel (WISCO) announced its price adjustments for the first quarter of 2006 on Tuesday, December 13. The company decreased its prices for 3.0 mm and thicker hot rolled products by RMB 300/mt ($37) excluding tax, and thinner than 3.00 mm products prices by RMB 350/mt ($43) also excluding tax. Prices of all cold rolled products are down by RMB 1,020/mt ($126) excluding tax. Wuhan Steel had adjusted its prices in November, too. At that time, the price cut compared to October was RMB 400/mt ($50) excluding tax for hot rolled products, and RMB 450/mt ($46)excluding tax for cold rolled products. Based on the Q4 prices in 2005, when 17 percent Vat is taken into account, Wuhan Steel's decrease range of 2006 Q1 prices for 3.0mm and thick hot rolled products reaches RMB 878/mt ($109) including tax, while the decrease range of cold rolled products is RMB 1'720/mt ($213). After the price adjustments, Wuhan Steel's ex-factory prices of 3.0mm hot rolled products is at RMB 3,300/mt ($408), while that of 1.0mm Q195 is at RMB 4,118/mt ($510). Wuhan Steel's prices are more competitive compared to Baosteel's 2006 Q1 prices released in late November. Baosteel decreased its 3.0 mm hot rolled prices by RMB 750/mt ($93), and its SPCC cold rolled prices by RMB 1,521/mt ($188). Wuhan's decrease ranges are RMB 128/mt ($16) and RMB 199/mt ($25) higher respectively compared to Baosteel's decrease range. Wuhan Steel's new ex-factory prices of 3.0 mm hot rolled products are RMB 200/mt ($25) lower than that of Baosteel, and its 1.0 mm Q195 cold rolled prices are RMB 323/mt ($40) lower than Baosteel's prices of 1.0mm SPCC cold rolled coil.