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Tycoons Group Enterprise's November Purchase Orders Has Increased, Only To Concern About Unforeseeable Changes Brought By China Steel's Low-price Wire Rod
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2012-11-28
Benefited from the drop of steel price and the wire rod market turnning active, Tycoon's October shipments is one-fold larger than September, and its November shipments is expected to remain at a steady standard. Most of its product orders in November are in good condition and the company holds a positive view to the market. However, the company is concerned that China Steel's plan of low-price wire rod may affect consumption in the market; therefore, it will keep observing the trend of domestic steel market.
After China Steel's January and February(2013) flat wire rod price, BaoSteel Group announced yesterday a higher wire rod price of December. This signifies that wire rod price seems to have derailed from the bottom and showed signs of restoring.
BaoSteel's material mainly comes from the Thai plant. Thus, the cost is lower than other companies. Howerver, due to recent price surge of ironstone and scrap steel, BaoSteel won't stand a chance of making profits by the price of just 19,500NT/ton (the same as China Steel's). In light of this, BaoSteel will keep observing the low-price plan and its efects to the domestic market.
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