Chinese leading steel mills lower list prices of seamless pipe
2012-08-23 09:57:05 [Print]
BEIJING (Asian Metal) 23 Aug 12 - Chinese leading steel mills, including Baotou Steel and Ansteel, lowered list prices of seamless pipe by RMB50-460/t due to decreasing quantities of contracts. Insiders predict that traders will follow suit soon, thus the market price is likely to go down in the short term.
Liaoning Province-based Chinese steel producer, Anshan Iron and Steel Group Co., Ltd. (Ansteel) announced list prices of seamless pipe for September on August 20, moving down prices of all grades by RMB50/t. Therein, the price of 20# Φ219mm*6mm is RMB3,950/t (VAT excluded).
Another leading steel mill in China, Baotou Iron and Steel Group Co., Ltd. (Baotou Steel) lowered ex-works prices of seamless pipe by RMB250-460/t on August 17, with those of 20# Φ168mm*7mm GB/T8162, 20# Φ273mm*8mm GB/T8162, 20# Φ377mm*10mm GB/T8162 and 20# Φ426mm*11mm GB/T8162 at RMB4,740/t, RMB4,800/t, RMB5,070/t and RMB5,170/t (VAT included) respectively.
So far, domestic main seamless pipe manufacturers have completed a new round of ex-work price cut.
A sales representative from Xinlifeng Pipe, a distributer of Baotou Steel in Baotou, Inner Mongolia Autonomous Region tells Asian Metal that he has already followed suit, quoting RMB4,280/t and RMB4,360/t (VAT included) separately for 20# Φ108mm*4.5mm GB3087 and 20# Φ219mm*6mm GB3087 from the mill, with the former down by RMB200/t and the latter down by RMB150/t.
The source attributes this round of ex-work price cut to the poor market performance, which leads to decreasing quantities of contracts received by above steel mills. “For me, more deals were concluded in past two days after the price decrease, but the quantity was limited,” said the source, “Most downstream buyers still hold a wait-and-see attitude towards the coming market and are reluctant to place orders.”
According to the source, more harm than good will be created by lowered list prices. On the one hand, the demand continues to be soft while the production capacity is strengthened. According to the latest data released by China Iron and Steel Association (CISA), 78 key enterprises across the country still maintained an average daily production of 1.99 million tons of crude steel in July, increased by 1.8% compared with the same ten days of June. On the other hand, traders are confronted with greater delivery pressures after signing new contracts with steel mills.
Liaoning Province-based Chinese steel producer, Anshan Iron and Steel Group Co., Ltd. (Ansteel) announced list prices of seamless pipe for September on August 20, moving down prices of all grades by RMB50/t. Therein, the price of 20# Φ219mm*6mm is RMB3,950/t (VAT excluded).
Another leading steel mill in China, Baotou Iron and Steel Group Co., Ltd. (Baotou Steel) lowered ex-works prices of seamless pipe by RMB250-460/t on August 17, with those of 20# Φ168mm*7mm GB/T8162, 20# Φ273mm*8mm GB/T8162, 20# Φ377mm*10mm GB/T8162 and 20# Φ426mm*11mm GB/T8162 at RMB4,740/t, RMB4,800/t, RMB5,070/t and RMB5,170/t (VAT included) respectively.
So far, domestic main seamless pipe manufacturers have completed a new round of ex-work price cut.
A sales representative from Xinlifeng Pipe, a distributer of Baotou Steel in Baotou, Inner Mongolia Autonomous Region tells Asian Metal that he has already followed suit, quoting RMB4,280/t and RMB4,360/t (VAT included) separately for 20# Φ108mm*4.5mm GB3087 and 20# Φ219mm*6mm GB3087 from the mill, with the former down by RMB200/t and the latter down by RMB150/t.
The source attributes this round of ex-work price cut to the poor market performance, which leads to decreasing quantities of contracts received by above steel mills. “For me, more deals were concluded in past two days after the price decrease, but the quantity was limited,” said the source, “Most downstream buyers still hold a wait-and-see attitude towards the coming market and are reluctant to place orders.”
According to the source, more harm than good will be created by lowered list prices. On the one hand, the demand continues to be soft while the production capacity is strengthened. According to the latest data released by China Iron and Steel Association (CISA), 78 key enterprises across the country still maintained an average daily production of 1.99 million tons of crude steel in July, increased by 1.8% compared with the same ten days of June. On the other hand, traders are confronted with greater delivery pressures after signing new contracts with steel mills.
