Chinese steel giant Baosteel has decided to keep its ex-factory prices for flat steel products unchanged for February delivery, compared to January levels. The details are as follows:
1. Hot rolled prices have remained at January levels. Thus, the price of 2.75-3.0 mm SPHC is still at RMB 4,242/mt ($622/mt), while that of SS400 stands at RMB 3,842/mt ($563/mt).
2. Cold rolled prices have remained unchanged. As a result, the price of 1.0 mm SPCC is at RMB 5,326/mt ($781/mt).
3. January prices are still in effect for hot rolled pickled products. Therefore, the price of 2.75-3.0 mm SPHC is still at RMB 4,797/mt ($703/mt).
4. Prices of hot dip galvanized coils are unchanged at January levels, with the price of 1.0 mm x 1,250 mm x C DC51D+Z still at RMB 5,377/mt ($788/mt).
5. January prices are still effective for electrogalvanized coils, aluminum-zinc coils and non-oriented silicon steel.
All the above prices are for reference, subject to Baosteel's official version. All prices exclude 17 percent VAT and are effective from January 14, 2010.
$1 = RMB 6.82
Despite the strong expectations for a steel price increase for February in the domestic market, Baosteel has not hiked its prices for February. It is reported that, as a state-controlled enterprise, Baosteel has kept its February prices unchanged after consideration of the macroeconomic situation and given the supply-demand relationship in the steel market. The new prices are also thought to reflect Baosteel's own view of the future market.