Baosteel Has Worked Out The New Price Policy

Baosteel has worked out the new price policy for the first quarter or January in 2009 and informed its distributors gradually. In this price adjustment, increase, drop and unchangeness are all witnessed, by which Baosteel aims to reduce high EXW prices in accordance to market developments and relieve dealers’ pressure while at the same time stabilizing market prices and boosting market confidence.

On the basis of its December steel prices, Baosteel decided to uplift hot-rolled pickled plate prices by RMB200/ton, maintain prices of common cold-rolled products, hot-dip galvanized steel and electro-galvanized steel, and lower HRC prices by RMB700/ton which are still higher than current market prices after the change. Other high value-added steel products like electric steel and steel pipe see price declines ranging from RMB500/ton to RMB1,000/ton, as Baosteel didn’t make large downward adjustment for them previously.

Baosteel’s price policy is considered to be a wind vane for the steel industry all the time. This new price policy for the beginning of next year indicated Baosteel’s intension to stabilize steel prices in China’s domestic market, believe of many insiders.
Source: China Steel Net.com

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