Posted on 12 Sep 2024
Baoshan Iron & Steel Co (Baosteel), the listedarm of the world's top steelmaker China Baowu Steel Group, is keeping the list prices of its carbon steel hot-rolled coil (HRC) unchanged for domestic sales in October, according to its latest release posted on September 10. A month ago, Baosteel had reduced its HRC pricesby Yuan 100/tonne ($14.07/t) for September sales, as Mysteel Global had reported.
Baosteel's price revision for October sales
Product | Price adjustment (Yuan/t) |
Hot-rolled coils | - |
Carbon steel plates | - |
Pickled and oiled coils | - |
Cold-rolled coils | - |
Hot-dipped galvanized steel | - |
Electro-galvanized steel | - |
Color-coated coils | - (HDG-based coated +30) |
Non-grain oriented electrical steel | - |
Grain oriented electrical steel | +100 |
Source: Baosteel
Commenting on the steel giant's decision, a Shanghai-based market analyst explained that on the one hand, China's steel market is now witnessing slightly reduced supply and recovering demand overall, which might give Baosteel the confidence not to lower its product prices.
But on the other hand, pressure on Baosteel to secure orders for next month still exists, he suggested, "so keeping the price unchanged could give the company time to observe and test the market."
Domestically, the recovery in steel demand is proving much slower than expected, considering that September-October are usually peak months for steel consumption in China.
In parallel, Baosteel's export business still faces intense competition and increasing trade friction in the international steel market – conditions that remove much of its incentive to raise prices, the analyst explained.
Meanwhile, the steady fall in steelmaking raw materials prices recently has also weighed on finished steel prices as the mills' production costs are reduced, another Shanghai-based market insider added.
Earlier on September 9, another Chinese steel major, Ansteel Iron & Steel Group (Ansteel), had chosen to cut its HRC list prices by Yuan 250/t for October domestic sales after cutting its prices for September, according to Mysteel's tracking.
Neither Baosteel nor Ansteel ever disclose the actual list prices of their products in their monthly pricing policies and usually give just the margin of price adjustment, Mysteel Global notes.
However, Shagang Group (Shagang), China's largest privately-owned producer headquartered in Zhangjiagang in East China's Jiangsu province, does at the start of each month.
Earlier on September 1, Shagang announced that it was clipping its HRC prices for September sales, with the reduction of Yuan 200/t taking its list price for Q235 HRC to Yuan 3,500/t and that for SPHC HRC to Yuan 3,510/t.
Source:Mysteel Global
