Posted on 11 May 2023
Baoshan Iron & Steel Co (Baosteel), the listed-arm of the world's largest steelmaker China Baowu Steel Group, has decided to slash Yuan 200/tonne ($28.8/t) off its list prices of carbon steel hot-rolled coil (HRC) for domestic sales in June, after having rolled over the list prices for May sales, according to the company's new pricing policy released via its official Wechat account on May 10.
As usual, Baosteel did not disclose the actual list prices for its individual products in its monthly pricing policy, but just the margin of price adjustment, Mysteel Global noted.
The steel giant's latest price cut reflected the softening of spot HRC prices in the domestic steel market. By May 10, Mysteel assessed China's national price of Q235 4.75mm HRC at Yuan 3,934/t including the 13% VAT, falling by a hefty Yuan 351/t on month.
Falling prices of raw materials and dull demand from end-users failed to support HRC prices, a Shanghai-based analyst said. Mysteel's iron ore index for SEADEX 62% Australian Fines, for example, had declined by $12.3/dmt from April 10 to settle at $106.7/dmt CFR Qingdao as of May 10.
In addition to HRC, Baosteel has also trimmed its list prices for carbon steel plates, pickled and oiled coils, cold-rolled coils, hot-dipped galvanized steel, electro-galvanized steel, and non-grain oriented electrical steel, all by Yuan 200/t for June sales.
Meanwhile, the company's list prices for color-coated coils are cut by Yuan 150/t. But the company has kept its list prices for grain oriented electrical steel unchanged for domestic sales in June, according to the release.
Source:Mysteel Global
