Baosteel keeps prices unchanged for November

11 Oct 2012

Reuters reported that Baoshan Iron and Steel will keep prices of its main products unchanged for a second straight month in November 2012, surprising the market that was expecting a hike given recent gains in spot prices.

Shanghai based Baosteel that it would keep prices for major products including hot rolled coil and cold rolled coil unchanged.

Traders said that another leading Chinese steel producer, Wuhan Iron & Steel, raised hot rolled coil prices by CNY 150 per tonne and cold rolled coil prices by CNY 100 per tonne for November 2012.

Mr Dai Xianghui, analyst with SDIC CGOC Futures in Beijing, said that "It was widely expected that the company would raise prices to catch up with gains in the spot market, but its move suggested it remained cautious over the near term outlook."

Mr Dai said that Baosteel's current prices are still higher than current spot market prices, which may be partly why the producer left prices steady.

Baosteel's pricing decisions usually set the benchmark for China's steel sector, although other steelmakers appear to be more bullish.