Metal Products News
- Baosteel may cut prices
Date: 21-Aug-2007 Sources: (Shenzhen Daily)
BAOSHAN Iron and Steel Co. (Baosteel) is expected to cut fourth-quarter prices for its major steel products, partly because of the global credit squeeze, industry sources familiar with the firm said Friday.
As recently as a few weeks ago, much of the market had expected China's largest steelmaker to raise prices for the fourth quarter of this year slightly from the third quarter because of strong domestic demand for steel.
But Baosteel has been reconsidering its outlook because of the turmoil in global markets, which could eventually hurt the world economy, and because it wants to remain price-competitive in the domestic market, the sources said.
'Baosteel has made a preliminary decision to cut prices on hot-rolled and cold-rolled steel products. The range will be discussed early next week,'one source, who declined to be named, told reporters Friday.
'The company wants to narrow the price gap with its major competitors, and it worries the Chinese steel market could face oversupply in the fourth quarter.'
A second source said: 'The company has recalled some sales managers based in Europe and Japan to discuss the outlook for the overseas market in the remainder of the year.
'Things are getting complicated after the U.S subprime mortgage crisis broke out.'
An official at Baosteel's board office, contacted by telephone, declined to comment. Baosteel, which adjusts its offer prices every quarter, is expected to announce fourth-quarter prices late this week.
Baosteel left third-quarter prices unchanged for major steel products while some rivals, such as Angang Steel, lowered their prices.
China, the world's largest steel-making country, produced 41.25 million tons of crude steel in July, the second-highest monthly figure after a record 42.12 million tons in June.
BAOSHAN Iron and Steel Co. (Baosteel) is expected to cut fourth-quarter prices for its major steel products, partly because of the global credit squeeze, industry sources familiar with the firm said Friday.
As recently as a few weeks ago, much of the market had expected China's largest steelmaker to raise prices for the fourth quarter of this year slightly from the third quarter because of strong domestic demand for steel.
But Baosteel has been reconsidering its outlook because of the turmoil in global markets, which could eventually hurt the world economy, and because it wants to remain price-competitive in the domestic market, the sources said.
'Baosteel has made a preliminary decision to cut prices on hot-rolled and cold-rolled steel products. The range will be discussed early next week,'one source, who declined to be named, told reporters Friday.
'The company wants to narrow the price gap with its major competitors, and it worries the Chinese steel market could face oversupply in the fourth quarter.'
A second source said: 'The company has recalled some sales managers based in Europe and Japan to discuss the outlook for the overseas market in the remainder of the year.
'Things are getting complicated after the U.S subprime mortgage crisis broke out.'
An official at Baosteel's board office, contacted by telephone, declined to comment. Baosteel, which adjusts its offer prices every quarter, is expected to announce fourth-quarter prices late this week.
Baosteel left third-quarter prices unchanged for major steel products while some rivals, such as Angang Steel, lowered their prices.
China, the world's largest steel-making country, produced 41.25 million tons of crude steel in July, the second-highest monthly figure after a record 42.12 million tons in June.
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