Posted on 13 Nov 2024
Baoshan Iron & Steel Co (Baosteel), the listed arm 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 December, according to the company's latest announcement on November 11. A month ago, Baosteel had hiked the price by a large Yuan 500/tonne ($69.6/t) for November sales, as reported.
Baosteel's price revision for December 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 | - |
Non-grain oriented electrical steel | Low- and middle-grade +100; |
Grain oriented electrical steel | - |
Source: Baosteel
A Shanghai-based market watcher suggested that while Baosteel seems to have sufficient HRC orders from end-users for this month, the Shanghai-headquartered mill is actually facing some pressure when securing orders for December, and it was partly this that prompted the company to hold almost all its list prices for next month.
Also, considering the relatively high HRC list price Baosteel had announced for November, end-users are paying more attention to their immediate needs for hot coils for December, rather than indulging in speculative buying, he explained. Growth in HRC consumption might be limited next month.
But another reason for rolling over its HRC price possibly lies in market expectations that cold rolled coil and pre-painted sheet demand for use in manufactured goods will strengthen by year-end, the analyst suggested. The steel giant decided that holding its product prices for December had some support.
China's makers of manufactured items, including automobiles and white goods, usually step up consumer marketing and promotional activities in December to boost year-end sales.
Meanwhile, on the same day another Chinese steel major, Ansteel Iron & Steel Group (Ansteel), announced that it too had decided to hold its HRC list prices for December domestic sales after lifting them by Yuan 500/t for November, 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 November 1, Shagang kept its HRC prices unchanged for November sales, with Q235 HRC listed at Yuan 3,800/t and SPHC HRC at Yuan 3,810/t.
Source:Mysteel Global