Baosteel issued EXW price policy of some major products for November on October 10, presenting the downward tendency generally. The drops differed from 250 yuan per ton to 500 yuan per ton, at the same time, as for some products, it released preferential policy for the ordering in October. Market participants estimated that under the downward tendency of steel market, Baosteel’ s pricing had to go to the market, but its differentiable brand advantage showed strong resilience. Meanwhile, it can be seen from the market after National Day that the market is difficult to go out of downward situation.
Reporters learned from Baosteel sales department that its pricing for November presented general falling state. Thereinto, heavy and medium plate products such as heavy plate, ship plate, boiler pressure steel decreased 400-500 yuan per ton, general carbon HR products declined 400 yuan per ton, machinery steel reduced 500 yuan per ton, CR products cut 400 yuan per ton generally, pickle products dropped 250 yuan per ton, the falls of hot-dipped galvanized, electricity coat zinc, color-coated and electronic steel ranged from 300 yuan per ton to 400 yuan per ton. Meanwhile, Baosteel issued the preferential policy for CRC and HRC ordered in October, with 100-350 yuan per ton.
According to the observation of some agencies, the domestic steel market continued the sluggish state after National Day, the settled price dropped continuously in downward tendency and social inventory of some steel products presented significant increase. Especially plate products, the social inventory is relatively large and the HR plate inventory has reached more than 1.1mln tons in Shanghai market, which will affect the plate products’ price tendency in later market and the fluctuation of the whole market. At the same time, with the drop of raw material price in upstream industries, the cost pressure on steel mills is weakening gradually. Therefore, even if the steel price presents the continuous falling, the initiative of steel mills in reducing production will not be strong, which is unfavorable for the balance of supply and demand.
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