Wednesday, 14 Jul 2010
China Securities Journal reported that the market is anticipating that leading Chinese steelmakers will reduce the ex-mill prices for Aug on lessening orders for Jul and inadequate efforts in production cuts.

The report learned from rumor that Baosteel will cut August prices for flat products possibly by CNY 300 per tonne to CNY 600 per tonne.

During this period, the spot steel prices are found close to the cost lines on the sluggish market by the end of June, six varieties prices had even fallen below the cost, forcing steelmakers to limit their outputs.

In July more mills joined in production cuts, involving a big amount of the yield. What’s worth mentioning is that the cub are further participated by Tangshan Steel, Wuhan Steel, Shagang, Pangang and other big ones, and the products touched also extended from rebar and wire rod to HRC, medium plate and so on.

(Sourced from China Securities Journal)