Baoshan Iron and Steel slash iron alloy charges in March for
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 domestic steel prices in the current consolidation of the big shocks of low background, the lower the prices of varieties have been significantly reduced, but the high number of ex-factory price of products an appropriate callback. Baoshan Iron and Steel products, such as the main carbon carbon thermal volume pickling hot-rolled, cold-rolled, hot-dip galvanizing, etc. out unchanged. Joint Research Center of the metal, analysts said Hu Ping, as the steel stock to gradually ease the pressure and the improvement of domestic economic data, show that the price of Baosteel’s willingness both to stabilize the market, and also hinted that business-to-steel having high expectations of improvement.
Baoshan Steel anticipate charges to stabilize market
Baosteel’s not like the beginning of this month as the main product prices substantially lower, mainly based on the current steel market is expected to gradually stabilize the optimism. Since the end of this month, as the market bottomed spiral rebound decline sheet market slowdown, and some varieties of iron and steel prices have rebounded, the overall pattern of up-market shocks, the current 4.75mm carbon Shanghai price of hot-roll mainstream 3210 yuan / tons, the lowest bit higher than this year, 120 per / ton. At the same time, varieties of domestic iron and steel stocks have been digesting the community, in which stocks fell the most obvious thread, 4.3 million tons from the pre-reduced from the current 3.55 million tons, from 2.86 million tons of hot-rolled down to around 2.65 million tons. HU Yan-ping that in this context, the policy of Baosteel prices mainly unchanged, it is clear to stabilize the market and restore confidence in the role of the market, if prices continued to fall in the majority of species will certainly have an adverse impact on market psychology.
Beijing Steel Joint Chief Information Officer said that whereas recurring Baosteel cost slashes, but its major merchandise charges are still higher than the market price. HU Yan-ping said that the capacity of freezing SPCC1.0mm * 1250 as an demonstration, the present market cost of about 4100 yuan / ton, while Baoshan Iron and Steel after-tax cost of 4359 yuan / ton, suspending inverted by more than 200 Yuan / ton. But the newest cost of Baosteel mostly to glossy and help to stabilize the iron alloy market, as well as the entire of the restoration of self-assurance, this is the Steel City is actually much-needed initiatives.
Consolidation will be the main tone of the disadvantaged
Chen Kexin hard metal analyst said that since the 4 quarter of 2008, the countrywide hard metal market has rudimentally concluded its foundation concussion. Although the fresh market costs plunge over, but with the least bit in 2008 weighed against to the descent is not very deep, short-term hard metal demand is looked frontwards to to recoup entirely the circumstances are not yet available. Vulnerable consolidation will be the hard metal market this year, the principle market.
Xu xiang chun trusts that the hopes of the prevailing hard metal goods produced is still not strong. At present, is broadly chatting trusted that the stage of in the household crude hard metal goods produced arrived at 1.25 million tons in rank to sanction market deliver and demand balance, and apparently the prevailing hard metal goods produced scope for in overload of market demand. In the case of small hard metal costs, hard metal goods produced scope for of enterprises is still quite quick distribute, the signals of descent 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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