Shanghai, August 28 (Gasgoo.com) Baoshan Iron & Steel (Baosteel), China's largest listed steel mill, has announced its plan to cut most of its steel product prices in October after it raised prices in three straight quarters this year, said xinhuanet.com yesterday.
Baosteel announced on Monday that it will slash the price of its cold-rolled steel products by 300 yuan ($43.8) per ton from the fourth quarter. The price-cut list also includes galvanized sheet products, which will go down 100 yuan per ton, hot-rolled pickled steel products, which will drop 300 yuan per ton, and galvanized fingerprint resistant sheet, which will dip 400 yuan per ton.
However, the prices of hot-rolled plate and silicon steel will stay unchanged. Products such as shipbuilding plate will be raised by 300 yuan per ton. In a statement explaining the price adjustment, Baosteel said the new prices were the futures price for the fourth quarter. Experts believe the explanation will give Baosteel a "broader leeway" to further correct its product prices.
An industry analyst said that the price change is lower than the market expectation, but will not generate a further impact on the steel product market. Because of its high quality, Baosteel's products are generally priced above the market quotation. Baosteel is the first Chinese steel company to release the Q4 steel product prices this year.
Baosteel's price cuts may be the result of weakened downstream demand and a new round of economic adjustment. Over the past two months, steel products witnessed a 10-12% price drop in the domestic market. By correcting its product prices, Baosteel is setting its price on a more market-orientated basis.
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