Baosteel to Freeze Hot, Cold Rolled Price for November

Baoshan Iron & Steel announced on Monday the firm keep the domestic selling price of hot and cold rolled flat steel unchanged for November. The firm tries to find the trend when steel market turned into weak since mid-September and the government terminates power supply control in November-December. Chinese steel supply is apparently getting loose when some makers increase the output while the demand improves seasonally.

The firm also keeps the price unchanged for electrogalvanizing steel, galvalume and plate for November. The firm increases the selling price by 100 yuan per tonne for pickling steel and stainless flat steel, by 150 yuan for hot dip galvanizing steel and by 200 yuan for non-oriented electrical steel. The firm also increases the colored galvanizing steel price by 100 yuan for November-December compared with September-October.

Chinese steel demand was active until early September due to the market expectation for higher price. However, the demand got slower after that. Chinese government tries to improve the environmental counteraction through power supply control, which impacts on steel production, but the policy couldn’t keep longer as steel production cut incentive.