SHANGHAI, Apr. 18 (SMM) – Angang Steel announced to cut its hot-rolled coil price for May by RMB 150/mt, with price for 5.5mm ordinary hot-rolled coil (excluding tax) down to RMB 3,430/mt. However, the much-concerned rebate for March’s procurement was still being discussed.
Market speculates that Angang Steel will offer RMB 350/mt in rebate for traders, but it was rumored Thursday that Benxi I/S will introduce a RMB 600/mt rebate, and traders were discontent with the RMB 300/mt rebate announced by Shougang. Ex-works prices for resources from Angang Steel were RMB 4,400/mt in March, while selling prices in Shanghai were only RMB 3,700/mt. Thus, traders suffered severe losses.
As Angang Steel pays great attention to the rebate, market expects higher rebate. However, the increase will be limited out of fear for sharper price decline which may lead to difficulty in selling goods. Besides, Taiyuan I/S also lowered price for May by RMB 400/mt, with price for 5.5mm ordinary hot-rolled coil at RMB 3,330/mt and that for 3.0mm SPHC coil at RMB 3,460/mt (excluding tax).