Baosteel cuts prices for July on retail price correction..

Baosteel cuts HR and CR prices for first time this year – According to press reports, China’s number-one steel maker Baosteel cut prices on its major steel products for July, with HR down RMB300 (-5.7%) to RMB4,942 (US$725) and CR down RMB500 (-8.3%) to RMB5,526 (US$810). The company adjusts prices every month and this is the first time it has cut prices this year. Of note, it raised prices three times in 1H10 due to raw material price hikes and demand recovery.

– Baosteel cut prices for July given weak retail prices and off-seasonality for steel from July. In particular, it cut auto-use steel sheet by RMB1,000/ton, which had seen very tight supply in1H10, mainly because July~August is a slow season for auto production and auto makers delayed their steel sheet purchases to take advantage of the retail steel price correction.