SteelOrbis Shanghai
On February 25, Baosteel released it price list for the second quarter of 2008, posting a considerable rise for all steel product varieties. The base price of hot rolled coil has increased by a margin of RMB 500-800/mt ($70-112/mt), while the price of cold rolled coil is up by RMB 800/mt ($112/mt). Furthermore, a price rise of RMB 1,000/mt ($140/mt) has been seen in galvanized coils, while the base price of wide and heavy plate has risen by RMB 800/mt ($112/mt).
Remarkably, due to the huge fluctuations in both the Chinese and global steel markets, Baosteel's quarterly price list is quite distant from the actual market price. In addition, from now on Baosteel is to announce its prices for some products on a monthly basis so as to enable itself to adapt more easily to the changing market situation.
The details of Baosteel's price adjustments for Q2 2008 are as follows:
I. Semi-finished steel
1. The price of billet has increased RMB 600/mt ($84/mt).
2. The price of round billet has risen RMB 600/mt ($84/mt).
3. Based on the slab price for March, the April price has increased RMB 700/mt ($98/mt).
4. March prices are still in effect for alloy extras for April.
II. Wire rod
1. Compared to the March prices, the prices of super low carbon wire rod, high carbon wire rod, card wire, and steel fiber have increased by RMB 800/mt ($112/mt), while those of cold heading alloyed wire rod, spring steel wire, welded wire rod, and cable steel wire are up by RMB 600/mt ($84/mt).
2. The price of steel curtain strand has increased by RMB 600/mt ($84/mt).
3. The April prices of pre-stressed steel stranded wire rod, cold heading carbon wire rod, and low carbon steel wire rod are up by RMB 800/mt ($112/mt) from March levels.
4. March prices are still valid for alloy extras for April.
III. Hot rolled
1. The April price of SPHC has increased by RMB 800/mt ($112/mt) from Q1 levels; while the prices of SS400 and shipbuilding plate (coil) have risen RMB 500/mt ($70/mt) based on the March prices. Thus, the price of SPHC 3.0 mm x 1,250 mm x C is RMB 4,842/mt ($678/mt).
2. Prices of other products are up by RMB 800/mt ($112/mt) for the second quarter.
IV. Hot rolled and pickled
1. The April prices of SPHC and DD11 have increased by RMB 600/mt ($84/mt).
2. Prices of other products are up by RMB 700/mt ($98/mt) for the second quarter.
V. Cold rolled
1. The prices of SPCC, BLC and DC01 have increased RMB 800/mt ($112/mt). As a result, the price of SPCC 1.0 mm x 1,250 mm x C is RMB 5,596/mt ($784/mt).
2. Prices of other products are up by RMB 800/mt ($112/mt). On the above basis, the price of B340/590DP has seen an additional increase of RMB 200/mt ($28/mt), while a further upward adjustment of RMB 300/mt ($42/mt) was made to the price of B400/780DP.
3. Sheet extras are adjusted to RMB 50/mt ($7/mt).
VI. Full Hard coil
Compared to the March prices, April prices are up RMB 700/mt ($98/mt) overall.
VII. Hot dip galvanized
1. For 52D and above:
(1) Prices are up by RMB 1,000/mt ($140/mt);
(2) H420LAD+Z and H420LAD+ZF prices see an added increase of RMB 200/mt ($28/mt) in addition to the above hike.
2. The April prices have increased RMB 700/mt ($98/mt) for 51D, with the price of DC51D+Z （ST01Z） 1.0 mm x 1,250 mm x C at RMB 6,177/mt ($865/mt).
3. Extras for zinc-iron alloy are up by RMB 200/mt ($28/mt).
VIII. Aluminum-zinc
1. DC51D+AZ prices have increased RMB 500/mt ($70/mt).
2. Prices of other products see an overall increase of RMB 650/mt ($91/mt).
3. On the above basis, products with thickness <= 0.44 mm have seen an additional increase of RMB 150/mt ($21/mt).
IX. Electrogalvanized and electrogalvanized fingerprint resistant coil
1. Products of DQ and above have increased by RMB 700/mt ($98/mt) overall. On this basis, B340/590DPE+Z and B340/590DPE+ZN saw an additional increase of RMB 200/mt ($28/mt), while a further upward adjustment of RMB 300/mt ($42/mt) has been made to B400/780DPE+Z and B400/780DPE+ZN.
2. April prices of SECC and BLCE+Z have increased by RMB 700/mt ($98/mt), with the price of SECC 1.0 mm x 1,250 mm x C at RMB 6,577/mt ($921/mt).
3. Extras for zinc-nickel alloy are adjusted to RMB 550/mt ($77/mt).
X. Color coated
1. (1) Prices have increased by RMB 500/mt ($70/mt) overall; (2) The prices of hot dip galvanized color coated coils of thickness < 0.5 mm have increased another RMB 100/mt ($14/mt); meanwhile, prices of aluminum-zinc color coated coils of thickness < 0.5 mm have increased another RMB 200/mt ($28/mt).
2. The above price adjustments are all based on the price list for March.
XI. Wide and heavy plate
1. Prices have risen RMB 800/mt ($112/mt). Following the adjustment, the price of SS400 30 mm x 2,000 mm x 12,000 mm is RMB 6,100/mt ($854/mt), while 20 mm x 2,000 mm x 12,000 mm shipbuilding plate A is RMB 6,750/mt ($945/mt).
2. The above price adjustments are all based on the price list for March.
XII. Electrical steel
All prices have increased RMB 600/mt ($84/mt), and the prices of B35A series have risen by an additional RMB 200/mt ($28/mt).
XIII. Electrolytic tinning plate
All prices have increased RMB 500/mt ($70/mt).
XIV. Electrochromic
Cover-made steel sheet have increased RMB 600/mt ($84/mt).
Prices of other products are up by RMB 500/mt ($70/mt).
The above price adjustments are all based on the price list for March.
XV. Steel pipe
1. 140 seamless pipe products: seamless plain end tube (tubing and casing) increased RMB 300/mt ($42/mt), while the corrosion-resistance series were up by RMB 500/mt ($70/mt). In addition, prices of drilling pipe increased by RMB 3,000/mt ($420/mt).
2. Boiler pipe: carbon steel has increased RMB 500/mt ($70/mt), while low-alloy steel (15Mo3, 15CrMoG, 12Cr1MoVG, T1, T1a, T2, T/P11, T/P12, T23/P23, 12Cr2MoWVTiB) is up by RMB 600/mt ($84/mt).
3. Mechanical structural pipe: products with diameter ≤ 42.4 mm have increased in price by RMB 350/mt ($49/mt), while diameters＞42.4 mm have gone up by RMB 300/mt ($42/mt); A106 series has increased by RMB 100/mt ($14/mt), while DZ60 has risen by RMB 200/mt ($28/mt).
4. HFW: pipeline prices have increased by RMB 700/mt ($98/mt); while the April prices of structural pipe are up by RMB 400/mt ($56/mt) from Q1 levels.
5. Pipe made in Lubao: April prices of boiler pipe have increased RMB 100/mt ($14/mt) compared to March levels, while the prices of common pipe are up by RMB 200/mt ($28/mt), and oil pipe is up by RMB 100/mt ($14/mt).
6. Precision pipe: seamless HR oil tube has increased by RMB 200/mt ($28/mt); boiler carbon tube is up RMB 250/mt ($35/mt); inner spiral pipe has risen RMB 400/mt ($56/mt); 15MoG, 15Mo3, 15CrMoG, 12Cr1MoVG, T1a, T2, and T11 has increased RMB 600/mt ($84/mt); T12 and 13CrMo44 is up RMB 300/mt ($42/mt); T22 and 10CrMo910 has risen RMB 150/mt ($21/mt); T2 and 15CrMoG inner spiral tube has increased RMB 200/mt ($28/mt); and the April prices of common tube are up RMB 300/mt ($42/mt). All increases are in comparison with the Q1 levels.
All the above prices exclude taxes (17 percent VAT) and are effective as of February 25, 2008.
$1 = RMB 7.14