It is reported that China"s domestic market prices of steel products are headed downward again toward a second bottom after they have changed little for the past two weeks or so.
Take market prices in the Shanghai area. The going prices after value-added tax indicate falls by CNY 100 to CNY 3,550 per tonne for HR coils by CNY 130 to CNY 4,270 per tonne for CR coils and by CNY 110 to CNY 4,350 per tonne for hot-dip galvanized sheets.
It is uncertain what factors have put back local market prices on a downswing. Having an influence are major price reductions of various steel products by Baosteel Co Ltd and Wuhan Iron & Steel Group Corp for December shipments, market sources point out. Besides, information is afloat that Anshan Iron & Steel Group has served notice to domestic customers on price reductions of what Ansteel supplies for December shipments. As a result, there is a possibility that Anshan"s price reductions account partly for local market prices on the decline again.
Indications are that domestic sales prices of Baosteel, Wisco and Ansteel for December shipments will come to light within this week, new asking prices that could differ widely from company to company.