Posted on 11 Jul 2024
Baoshan Iron & Steel Co (Baosteel), the listed-arm of the world's top steelmaker China Baowu Steel Group, has decided to cut the list prices of its carbon steel hot-rolled coils (HRC) by Yuan 100/tonne ($13.74/t) for domestic sales in August, after having rolled over the list prices for July sales, the company announced on its official WeChat account on July 9.
Baosteel's price revision for August sales
Product | Price adjustment (Yuan/t) |
Hot-rolled coils | -100 |
Carbon steel plates | -100 |
Pickled and oiled coils | -100 |
Cold-rolled coils | -100 |
Hot-dipped galvanized steel | - |
Electro-galvanized steel | - |
Color-coated coils | - |
Non-grain oriented electrical steel | - |
Grain oriented electrical steel | - |
Source: Baosteel
Behind the price reduction lies the fact that Baosteel has been struggling to secure orders for next month amid weak demand at both home and abroad, a Shanghai-based market analyst noted.
Domestically, the traditional summertime off-season for steel consumption in China continues to curb the appetite of end-users for many steel products, including hot coils.
Steel buyers and distributors are generally choosing to just keep buying hot coils only for their immediate use instead of hoarding stocks or dabbling in speculative buying, the analyst explained.
In parallel, tepid overseas steel demand and increasing trade friction against Chinese steel products are also weighing on Baosteel's export business, he added.
As usual, Baosteel did not disclose the actual list prices for individual products in its monthly pricing policy, but just the margin of the price adjustment, Mysteel Global notes.
But Shagang Group (Shagang), China's largest privately-owned producer headquartered in Zhangjiagang in East China's Jiangsu province, usually opens its price list for its long and flat products at the start of each month, which gives a pointer to what Baosteel might be asking for the month ahead.
Earlier on July 1, Shagang announced that it was clipping its HRC prices for July sales, with its reduction of Yuan 150/t taking Shagang's list price for Q235 HRC to Yuan 3,950/t and that for SPHC HRC to Yuan 3,960/t. Though recognized for being China's largest electric-arc-furnace steelmaker, Shagang also operates several blast furnaces, as reported.
Source:Mysteel Global
