Over ten steel companies reduced prices after Baosteel

Over ten domestic steel companies have followed Baosteel's trend to reduce the steel prices, generally a drop of RMB 200 per ton.

Recently, journalist learned from over ten steel companies such as Angang Steel, Shougang, Masteel and Basteel that the prices of some steel products have dropped. For Shougang, the HR steel plates are RMB 200 per ton cheaper than in August; for Basteel, the hot rolled coils have decreased by RMB 300 per ton, wire rods by RMB 300 per ton, cold rolled coils by RMB 300 per ton; for Baosteel, HR coils, CR coils, chilled cast steels and galvanized sheets all see a fall of RMB 200 per ton.

According to the statistics provided by Ministry of Commerce, the average price of domestic steel in July was RMB 6284 per ton, a drop of 0.4% compared with June. For the first half of August, the average price was RMB 6124 per ton, down 2.2% compared with the second half of July. Besides, the prices of wires, plates, tubes and sections have also reduced in some degree.

Affected by the drop in price of steel companies, the price of steel and iron tectonic plates generally falls. The drop in percentage of Baosteel, Wuhan Steel, Masteel all exceeds 5%.

Zhang Ping, Analyst of Umetal pointed out that since the prices of steel market started to reduce in mid June, the rising prices of Baosteel for the first three quarters have been over the current market price. Nevertheless, the prices of Baosteel still play an important role, that's why many other steel companies follow its trend. The adjustment in price during this period is in accordance to the market overall expectations.

Zhang also said because of the growing demand after the Olympic Games, steel supply is expected to see growth and some traders will raise the price by this chance. The steel price in September is expected to rise and this trend will end at the end of September. As for the second half of this year, he anticipated the steel prices will not rebound significantly.

Translated by Alice
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