Posted on 16 Nov 2022
Baoshan Iron & Steel (Baoshan Steel), the listed arm of the world's largest steelmaker China Baowu Steel Group, has decided to cut its list prices for carbon steel hot-rolled coils (HRC) by Yuan 100/tonne ($14.2/t) for December domestic sales, according to the company's new pricing released via its official WeChat account.
Prior to the adjustment, Baoshan Steel has kept its list prices unchanged for two months, Mysteel Global noted.
As usual, Baoshan Steel doesn't reveal the actual list prices in its monthly pricing policy, but only the margin of adjustment, Mysteel Global understands.
Baoshan Steel has been receiving fewer orders from end-users this month than October, as November is traditionally a slack period for steel consumption. So the company tends to sell off some stocks at hand even at lower prices to reduce potential risks, a Shanghai-based analyst said.
Meanwhile, the room for China's steel exports to increase further is rather limited in the coming months, as high inflation has gone global and thus has dampened steel demand from overseas users, he added.
As of November 14, China's national price of Q235 4.75mm HRC under Mysteel's assessment slipped by Yuan 123/t from October 14 to Yuan 3,874/t including the 13% VAT.
Regarding Baoshan Steel's other list prices for December sales, the firm has also slashed Yuan 100/t for carbon steel plates, color-coated coils, while its prices for grain oriented electrical steel have been lifted by Yuan 300/t depending on specifications.
And the mill's December list prices of pickled and oiled coils, electro-galvanized steel and non-grain oriented electrical steel will decline by Yuan 100/t depending on specifications, while those of cold-rolled coils, hot-dipped galvanized steel will remain unchanged.
Source:Kallanish
