Baoshan Iron and Steel Co., Ltd, also known as Baosteel, a subsidiary of state-run China Baowu Steel Group, continued to cut its domestic base prices for some main steel products by 150-200 yuan/t for June bookings.
These steel products include hot-rolled coil and sheet, heavy plate, cold-rolled coil and sheet, pickled steel, and hot-dip galvanized coil.
Steel supply is expected to climb backed by reduction in costs and improved profit, yet demand expectation remained weak in the upcoming traditional off-peak season.
Baosteel's orders showed a slight decline in June compared to May. Weakened overseas consumption led to a decrease in steel export volume and continued pressure on domestic sales.
In addition, the domestic construction projects have showed a significant decline due to financial constraints compared to the previous two months, adding further pressure to construction steel demand, while still weak buying strength in the auto sector still curbed the demand for some steel plates.
Baosteel's pricing decisions are generally regarded as a bellwether for the industry.
Baosteel's heavy plates are mainly used in shipbuilding, offshore platform, boiler, pressure vessel, pipeline, high building, bridge and heavy-duty trucks, etc. and hot-rolled steel products are widely used in ship, automobile, bridge, building, machinery and pressure vessel and other industrial applications.
(Writing by Emma Yang Editing by Harry Huo)
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