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Baoshan Iron and Steel slash iron alloy charges in March for

May 11th, 2009

27 Iron and Steel introduced in June the prices of steel products, including steel, low-carbon hot-roll, heavy plate, as well as reduced volume coating 200-300 yuan / ton, and the remaining product prices remained unchanged in May. This is the third time this year Baosteel lowered prices of manufactured products.

But It is worth noting that household iron alloy charges in the present consolidation of the large-scale alarms of reduced backdrop, the smaller the charges of diversity have been considerably decreased, but the high number of ex-factory cost of goods an befitting callback. Baoshan Iron and Steel goods, for example the major carbon carbon thermal capacity pickling hot-rolled, cold-rolled, hot-dip galvanizing, etc. out unchanged. Joint Research Center of the steel, analysts said Hu Ping, as the iron alloy supply to step-by-step alleviate the force and the enhancement of household financial facts and numbers, display that the cost of Baosteel’s enthusiasm both to stabilize the market, and furthermore hinted that business-to-steel having high anticipations of improvement.

Baoshan Steel expect prices to stabilize market

Baosteel’s not like the commencing of this month as the principle wares costs extensively worse, chiefly supported on the prevailing hard metal market is looked frontwards to to slowly stabilize the optimism. Since the end of this month, as the market bottomed spiral rebound descent sheet market slowdown, and some kinds of steel and hard metal costs have rebounded, the complete pattern of up-market frightens, the prevailing 4.75mm carbon Shanghai charge of hot-roll mainstream 3210 yuan / tons, the least bit higher than this year, 120 per / ton. At the matching time, kinds of in the household steel and hard metal stores have been digesting the community, in which stores plunged the most apparent idea, 4.3 million tons from the pre-reduced from the prevailing 3.55 million tons, from 2.86 million tons of hot-rolled down to throughout 2.65 million tons. HU Yan-ping that in this context, the guideline of Baosteel costs chiefly unchanged, it is clear to stabilize the market and repair self-confidence in the job of the market, if costs carried on to plunge in the bulk of species will surely have an undesirable consequence on market psychology.

Beijing Steel Joint Chief Information Officer said that although repeated Baosteel price cuts, but its main product prices are still higher than the market price. HU Yan-ping said that the volume of cold SPCC1.0mm * 1250 as an example, the current market price of about 4100 yuan / ton, while Baoshan Iron and Steel after-tax price of 4359 yuan / ton, hanging upside down by more than 200 Yuan / ton. But the latest price of Baosteel mainly to smooth and help to stabilize the steel market, as well as the whole of the restoration of confidence, this is the Steel City is currently much-needed initiatives.

Consolidation will be the major pitch of the deprived

Chen Kexin steel analyst said that since the 4 quarter of 2008, the national steel market has basically completed its bottom concussion. Although the recent market prices fall again, but with the lowest bit in 2008 compared to the decline is not very deep, short-term steel demand is expected to recover fully the conditions are not yet available. Vulnerable consolidation will be the steel market this year, the main market.

Xu xiang chun accepts as factual that the desires of the present iron alloy output is still not strong. At present, is usually accepted that the grade of household crude iron alloy output come to 1.25 million tons in alignment to permit market provide and demand balance, and conspicuously the present iron alloy output capability in surplus of market demand. In the case of reduced iron alloy charges, iron alloy output capability of enterprises is still somewhat fast issue, the indications of down turn has not yet been reflected.

In addition to the effects of supply and demand side, steel prices can rise late Another important factor is the price of the original fuel. “My iron and steel,” Research Center Jiesheng analysts have said that in the next few months, prices of major raw materials for iron and steel production further down the existence of space, coking coal and coke prices room for a larger decline in iron ore spot prices is limited. However, the cost does not mean that the downlink will also decline in steel prices, depending on the capacity of iron and steel enterprises to play. If the iron and steel production capacity of enterprises can be effectively controlled, while steel prices in the case of cost reduction is still possible to remain stable.

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