Posted on 13 Aug 2024
Baoshan Iron & Steel Co (Baosteel), the listed-arm of the world's top steelmaker China Baowu Steel Group, has decided to clip the list prices of its carbon steel hot-rolled coils (HRC) by Yuan 100/tonne ($13.93/t) for domestic sales in September, after having reduced the list prices for August sales by the same margin, according to the company's latest announcement on August 9.
Baosteel's price revision for September sales
Product | Price adjustment (Yuan/t) |
Hot-rolled coils | -100 |
Carbon steel plates | -150 |
Pickled and oiled coils | -100 |
Cold-rolled coils | -100 |
Hot-dipped galvanized steel | -100 |
Electro-galvanized steel | -100 |
Color-coated coils | -100 |
Non-grain oriented electrical steel | -100 |
Grain oriented electrical steel | +100 |
Source: Baosteel
The mismatch between weak demand for HRC and ample supply is believed to be exerting pressure on Baosteel when securing orders for next month, a Shanghai-based market analyst commented.
Overall, China's steel consumption including that of hot coils is being impacted by the usual summer off-season for steel use. On the other hand, hot coil supply remains at a high level due to relatively better margins when compared with the sluggish market for construction steel.
Meanwhile, Baosteel's export business, which faces intense competition and increasing trade friction in the international steel market, might also be another consideration behind its price cut, the analyst noted.
Although September is usually a peak month for steel consumption in China, the lingering supply-demand imbalance has dulled the hopes of market participants for a recovery, he added.
Besides, the continuous decline in steelmaking raw materials prices has also diminished the support they might have lent to finished steel prices, another market watcher commented.
Also on August 9, another Chinese steel major Ansteel Iron & Steel Group (Ansteel) lowered its HRC list prices by a larger Yuan 200/t for September domestic sales, after cutting its prices for August, 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.
With its latest pricing policy on August 1, Shagang reduced its list price for Q235 HRC by Yuan 250/t on month to Yuan 3,700/t, and that for SPHC HRC by the same Yuan 250/t to Yuan 3,710/t, both for August sales.
Source:Mysteel Global
