September Domestic Sales Price by China Steel Corp. Remains Flat and Unfavored by Downstream Makers

The price announced on July 19 by China Steel Corp. has caused inconsistent feedbacks from downstream makers. Re-roller plants think that even if the August price of Bao Steel and WISCO has stopped dropping, the September price still ought to correspond properly due to the insufficient drop margin of July/Aug. price. Sources from the downstream even point out that the flat price gives litttle room for the industry to make adjustment, and that the industry will have to lie down beaten and strive pass the hard time in Q3. Wire, screw and nut makers think there is lack of surprise in the announced price. Sheet makers think it is indeed less possible for China Steel Corp. to announce lower price, given the current steel price trend.

Wire rod makers think that the less surprising price still fits with their expectation, and that they will receive POs with more ease as long as the price remains stable. However, screw and nut makers indicate that the September price is not a good news because the incompetitive July/Aug. price have already made the industry struggle for placing POs.