For the low ebb of the Chinese steel market, last week, Baosteel is no doubt that some exciting off-season prices. However, lower prices of steel have been used to the city of Baosteel’s price increase has not given a warm applause, the reaction was generally more cautious. Integrated multi-view news, Baosteel price adjustment factors to see more wind to reduced losses. The iron and steel industry, has just released a market and stable signal. Steel enterprises could be feeling the “stone” new year holiday.
Compared to June of this year’s steel prices high, 5-6 straight months of decline in steel prices has been to let the market used to price cuts, while the biggest worry is that it will re-appear in October’s “crash” market. Baosteel price adjustment is clearly to safeguard stability in the market an “assurance.”
Reporter noted that Baosteel raised the steel prices in February 2009, in which hot-rolled product has 100-200 yuan / ton increases ranging from cold-rolled products will rise by 300 yuan / ton, electric galvanized and hot dip galvanized products were up 340 yuan and 250 yuan, painted the largest price increases, reaching 450. On the current prices, the products of Baosteel or at a loss. To 3.0mm hot-rolled products, for example, after the price adjustment is 4027 yuan / ton. Higher than the market 200-300 yuan / ton, but still loss of 300 yuan / ton. The Anshan Iron and Steel in January had raised prices of hot-rolled products 3,826 yuan / ton. Raised 410 yuan. Loss is still hard to avoid. Therefore, more analysts believe Baosteel price adjustment was mainly due to see the market stabilize, homeopathic price increases, reduced losses, while also stable “morale.”
Handan Steel, a production volume of 300-400 million tons of medium-sized steel mill Baosteel price adjustment when the head spoke very frankly, did not show too much excitement. He said Baosteel cut prices before the market is very sensitive to price them as long as Baosteel, we will quickly dumped goods leave. The Baosteel price rise, the market reaction was more cautious. Now the market is basically stable, but the price is not high. Good product advantageous steel, bad product is still loss. The official acknowledged that steel is now produced in the complex, not a full stop production, but almost every family in a limited production status. The stove is now cut his own limited production of about 30%. Orders mainly temporary. “Good day” on the steel is still a “luxury.”
And relatively flat response from traders. Although the stock has been down, we do not hand the goods over. For the 2009 Spring Festival in front of store goods, we still cautious, does not appear to follow suit enthusiastically participated in the phenomenon. Stability of traders to the market consensus emerged on the market can reverse the rising trend of a lack of confidence. Members of the immediate resumption of steel production is also a relatively clear understanding of the further expansion of production once the complex, very large downward pressure on steel prices. After all, the market demand is relatively weak support.
Together, in 2009, the domestic steel market, is difficult. Iron and steel industry is still the most important task losses, excess capacity 100 million tons is not a minority, demand boost needed time to release, while the decline in exports is expected to reduce 20 million tons of steel exports, which is great pressure on the domestic market. At present, due to other national currencies against the RMB depreciated 300-400 U.S. dollars / ton hot-rolled ultra low-cost products has already begun exporting small quantities to the Chinese market. Steel producing countries in the world?? China faces of steel “back” pressure. Steel price increases have taken place
While speaking, would have a positive impact on the market, but now can not see. SABUNG AYAM