Wednesday, July 13,
China’s Wuhan Steel has also decided to keep its HRC prices unchanged for August in line with the pricing moves made by Baosteel on Monday.
However, the company will raise its CRC prices for some grades by 30-50 yuan ($4.60-7.70) per tonne for August.
“Chinese steel mills are facing a tough period for cold rolled coil this year, partly, due to increasing rolling capacities, and partly, due to weaker demand from auto and house appliances,” said a steel trader in Shanghai.
China has withdrawn most subsidies for car purchases, which has hurt the auto sector and hit sales by major auto sheet mills including Baosteel and Wuhan Steel.
High production cost has given major steel mills limited room to lower prices after they provided discounts in July.
“I still don’t expect any big upturn for steel flat products in the second half of this year as the tightening measures continue,” the trader added.
Source: Reuters
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