Posted on 13 Mar 2024
Baoshan Iron & Steel Co (Baosteel), the listed-arm of the world's top steelmaker China Baowu Steel Group, has decided to keep the list prices of its carbon steel hot-rolled coil (HRC) unchanged for domestic sales in April, after having raised these by Yuan 100/tonne ($13.9/t) for March, according to its latest release posted on its official WeChat account on Monday.
Immediate replenishment needs among HRC users, plus market expectations for improving steel consumption in April – traditionally a strong month for steel demand in China – were most likely the two key motives for the steel giant's prices defence, a Shanghai-based market analyst suggested.
In parallel, Baosteel's relatively good performance in winning export orders also lent some support to its rollover decision, he pointed out.
Besides, lower production costs have recently seen Baosteel's profit margins improve to some extent, which prompted it to hold its prices to secure profitability, the analyst added.
For example, Baosteel's iron ore costs are swinging more to its favour, with the Mysteel SEADEX 62% Australian Fines index declining to $108.55/dmt CFR Qingdao on March 11, nearly a seven-month low, according to Mysteel's latest tracking.
Other than HRC, Baosteel will also hold prices for its carbon steel plates, pickled and oiled coils, cold-rolled coils, color-coated coils and non-grain oriented electrical steel for April sales. The list prices for electro-galvanized steel and hot-dipped galvanized steel will be raised by Yuan 100/t for certain specifications for sales next month, however.
Meanwhile, the list prices for April sales for grain-oriented electrical steel will be lifted by Yuan 200/t, and on this basis, the price for some grades of GO steel will be raised by another Yuan 300/t, according to the release.
Baosteel's decision to hold its HRC prices follows that of Ansteel Iron & Steel Group, China's second-largest steel producer headquartered in Northeast China's Liaoning province, which earlier on March 8 had announced that it was keeping its HRC list prices unchanged for April sales. Ansteel had also rolled over its hot coil list prices for January-February sales, according to Mysteel's tracking.
Neither Baosteel nor Ansteel ever disclose the actual list prices for their products in their monthly pricing policies – usually giving 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 and on March 1, it told customers it would be rolling over its HRC list prices for March sales.
With its latest pricing policy, Shagang's list price for Q235 HRC remains unchanged on month at Yuan 4,300/t while that for SPHC HRC holds at Yuan 4,310/t, the company had announced. Though recognized for being China's largest electric-arc-furnace steelmaker, Shagang also operates several blast furnaces, the newest being a large 5,800 cu metre unit commissioned last October at its Zhangjiagang works supplied by Danieli Corus, Mysteel Global notes.
Source:Mysteel Global
