Baosteel's ex-factory price for steel products was released in advance “in advance†yesterday, and most of the steel prices were generally reduced by RMB 200-300. This is Baosteel's first general price drop since last August.
Unsatisfactory ordering in April According to Baosteel's latest price policy, the company lowered 200 yuan/ton for hot-rolled, pickled, electro-galvanized, galvanized, and partially non-oriented electrical steel products, while popular cold, hot-dip galvanized, color-coated products, etc. It is generally lowered by 300 yuan/ton.
Baosteel generally publishes the steel price policy for the next month in mid-month. However, this time the pricing policy was introduced in advance. Analysts believe that one of the reasons is that Baosteel recently “had a hard timeâ€.
According to Baosteel Trade Department sources, due to the high ex-factory prices, Baosteel's ordering situation in April was not ideal.
Industry players or follow-up analyst Hu Yanping of China United Steel, told reporters that Baosteel's latest cut in ex-factory prices, or in July last year, since then, Baosteel's price policy either price increases, or flat.
Since mid-February this year, other steel companies have lowered their steel prices. “In contrast, Baosteel's ex-factory price is too high.†Hu Yanping said that taking cold coils as an example, Baosteel’s pre-tax price is 450 yuan/ton higher than that of Anshan Iron and Steel. She analyzed that because the steel used for home appliances does not have high demand for automotive steel, if the price difference is too far, household appliance companies will choose other steel companies to purchase.
Industry analysts believe that other mills' ex-factory prices in May will also fall. "It wasn't with Baosteel, but the trend of the market."
Reporter Zhang Hao
Unsatisfactory ordering in April According to Baosteel's latest price policy, the company lowered 200 yuan/ton for hot-rolled, pickled, electro-galvanized, galvanized, and partially non-oriented electrical steel products, while popular cold, hot-dip galvanized, color-coated products, etc. It is generally lowered by 300 yuan/ton.
Baosteel generally publishes the steel price policy for the next month in mid-month. However, this time the pricing policy was introduced in advance. Analysts believe that one of the reasons is that Baosteel recently “had a hard timeâ€.
According to Baosteel Trade Department sources, due to the high ex-factory prices, Baosteel's ordering situation in April was not ideal.
Industry players or follow-up analyst Hu Yanping of China United Steel, told reporters that Baosteel's latest cut in ex-factory prices, or in July last year, since then, Baosteel's price policy either price increases, or flat.
Since mid-February this year, other steel companies have lowered their steel prices. “In contrast, Baosteel's ex-factory price is too high.†Hu Yanping said that taking cold coils as an example, Baosteel’s pre-tax price is 450 yuan/ton higher than that of Anshan Iron and Steel. She analyzed that because the steel used for home appliances does not have high demand for automotive steel, if the price difference is too far, household appliance companies will choose other steel companies to purchase.
Industry analysts believe that other mills' ex-factory prices in May will also fall. "It wasn't with Baosteel, but the trend of the market."
Reporter Zhang Hao
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