Wuhan Steel to keep hot-rolled coil prices unchanged for August - ResearchInChina

Date:2011-08-15     Source:liaoyanlile  Text Size:

SHANGHAI, July 12 (Reuters) - China's Wuhan Steel will keep its hot-rolled coil prices unchanged for August bookings, market sources said.

The company will raise its cold-rolled coil prices for some grades by 30-50 yuan ($4.60-7.70) per tonne for August, industry consultancy Custeel.com said, basically in line with the pricing moves made by Baosteel on Monday.

"Chinese steel mills are facing a tough period for cold-rolled coil this year, partly, due to increasing rolling capacities, and partly, due to weaker demand from auto and house appliances," said a steel trader in Shanghai.

China has withdrawn most subsidies for car purchases, which has hurt the auto sector and hit sales by major auto sheet mills including Baosteel and Wuhan Steel.

High production cost has given major steel mills limited room to lower prices after they provided discounts in July.

"I still don't expect any big upturn for steel flat products in the second half of this year as the tightening measures continue," the trader added.

Baosteel will also keep hot-rolled coil prices unchanged from July and lift cold-rolled coil prices by 50 yuan per tonne.

($1 = 6.467 yuan) (Reporting by Ruby Lian and Jacqueline Wong)
 

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