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Baosteel cuts June prices on low appetite
Aggregated Source: Shanghai Daily: Business

BAOSHAN Iron and Steel Co, China's largest listed steel maker, has reduced June prices for main products, its first cut in nine months, amid weak demand as economic recovery slows.

The company cut hot-rolled steel prices for June delivery by 180 yuan (US$29) per ton and cold-rolled steel prices by 150 yuan per ton, according to a statement yesterday. Shanghai-based Baosteel's pricing policy usually sets the tone for the rest of the market in China.

Citing weak data in housing starts and manufacturing, the China Iron and Steel Association said last month that the domestic steel market may remain weak in May which traditionally is a peak consumption season.

China's producer price index fell 2.6 percent in April, after declining 1.9 percent in March, according to official data released yesterday, signalling sluggish demand for industrial products.

Wang Bei, of Mysteel Research Institute, wrote in a note that while Baosteel and Wuhan Iron & Steel Co have room to cut June prices, other major mills like Angang Steel Co may maintain prices because they had unveiled price cuts for previous months.

Baosteel had officially kept May prices flat after raising them for five consecutive months, but traders said the mill has been offering discounts for May bookings.

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Copyright Shanghai Daily: Business