Two major China steelmakers cut December prices

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

19 Nov 2010

Two leading Chinese steel mills annouced cuts to steel prices for December bookings in response to falling prices after Baosteel kept prices unchanged for the month from November. The two major mills, both accounting for a chunk of the domestic market share for flat steel products, expressed concerns about weak steel demand during the winter season.
Wuhan Steel, China's third-largest steel mill, decided to cut hot-rolled coil prices by 150 yuan ($22.59) to 4,110 yuan per tonne from November.
Cold-rolled coil prices will also be slashed by 240 yuan to 5,060 yuan per tonne.
Its domestic rival Angang, the country's fourth-largest, followed by dropping hot-rolled coil prices by 200 yuan to 3,620 yuan per tonne and cold-rolled coil prices by 150 yuan to 4,490 yuan per tonne, from the previous month.
All prices exclude the 17-percent value-added tax.
China's Baosteel, the leading pricing leader setting the tone for the sector, annouced that it would keep its December prices unchanged, which put a lid on spot prices.
The China Iron & Steel Association expects that domestic steel prices will stay volatile due to slow seasonal demand and as the government implements more tightening policies to curb inflation.

Source: Reuters