SHANGHAI, Apr. 10 (SMM) – Baosteel announced to keep its hot-rolled coil prices flat in May considering the maintenance expected in September, but RMB 100/mt discount will be offered.
Although orders at Baosteel were reported decent after the mill raised its price for April, sales were negatively affected by the price cuts by other steel mills. That, combined with the upcoming low-demand season for manufacturing, left it understandable for Baosteel to introduce discount. However, as market prices slipped sharply in March, some downstream buyers said they may turn to purchase from traders instead of steel mills.
Given the approaching low-demand season, steel mills are making preparation for reducing risks, such as Baosteel’s discounts, the change of trading pattern of WISCO, Chengde I/S is also considering new selling mode.