Chinese steel giant which was recently in news for its merger with country’s another steel major Wuhan Iron and Steel Company (WISCO) has announced its flat products prices for August deliveries.
Given the uncertain sentiments in country’s domestic market, the company has made a cautious decision of keeping its prices unchanged for next month deliveries.
The effective rates for HRC (5.5mm, SS400) are heard to be at RMB 3,642/MT and 3mm HRC is at RMB 3,512/MT. CRC (1.0mm, SPCC) is at RMB 3,896/MT. Whereas HDG coil (1.0mm, Hot dip galvanized coil) is at RMB 4,577/MT. All prices are on ex-works basis excluding VAT.
Baostel’s price policy usually sets the tone for country’s rest of the steel market.
Baosteel to Slash its Production Capacity
As a part of supply side reforms, company has pledged to cut 9.2 MnT of its crude steel capacity between 2016 to 2018. This is equal to about one-fourth of its 2015 production of 36.11 MnT.
The company plans to close its flagship plants in Shanghai and other branches outside the city. The plants will not resume production after closure.
The Chinese government is actively making efforts to deal with the problem of steel over-capacity in the country. It is encouraging consolidation between the steel majors and closure of steel plants with excess capacity by setting up annual production cut targets and funds to deal with the problem of unemployment that will arise after the plants shut-down.
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