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Baosteel's major products set to be more costly
By Feng Jianmin |
September 14, 2011, Wednesday
|
Print Edition
Print Edition
BAOSHAN Iron and Steel Co, China's largest listed steel maker, will raise prices for its major products for October delivery to meet expected strong demand.
The steel maker will increase prices for its hot-rolled products by 60 yuan (US$9.40) a ton and raise those for cold-rolled steel by 50 yuan a ton from this month's level, it said yesterday, without giving base prices.
Shanghai-based Baosteel's latest pricing policy, which is seen as a benchmark in the domestic industry, indicates rising costs and an anticipated strong demand in the traditionally peak season.
Feng Gangyong, a researcher at GF Securities, wrote in a report that since prices of raw materials and coal are increasing, the market is expecting a price hike during the peak season.
But he said that steel prices will not rise significantly as the property market is set to stay sluggish due to the government's tightening measures although China's economic growth and industrial expansion are seen to be stable.
It is the second consecutive month Baosteel has announced a rise in steel prices. The company cut prices for July and August products due to lower demand from automobile and home appliance makers.
Baosteel's net profit fell 37 percent year on year in the first half of this year on weak demand and rising costs. It saw a gloomy outlook and warned of thinning profit margin in the second half.
The steel maker will increase prices for its hot-rolled products by 60 yuan (US$9.40) a ton and raise those for cold-rolled steel by 50 yuan a ton from this month's level, it said yesterday, without giving base prices.
Shanghai-based Baosteel's latest pricing policy, which is seen as a benchmark in the domestic industry, indicates rising costs and an anticipated strong demand in the traditionally peak season.
Feng Gangyong, a researcher at GF Securities, wrote in a report that since prices of raw materials and coal are increasing, the market is expecting a price hike during the peak season.
But he said that steel prices will not rise significantly as the property market is set to stay sluggish due to the government's tightening measures although China's economic growth and industrial expansion are seen to be stable.
It is the second consecutive month Baosteel has announced a rise in steel prices. The company cut prices for July and August products due to lower demand from automobile and home appliance makers.
Baosteel's net profit fell 37 percent year on year in the first half of this year on weak demand and rising costs. It saw a gloomy outlook and warned of thinning profit margin in the second half.
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