Chinese steelmakers reduce September prices for flat rolled products

China’s largest flat producers (Baosteel, Angang and Bengang) have reduced flat offer levels for September sales, which are expected to be challenging. 

Baosteel cut prices for hot-rolled and cold-rolled products by 100 yuan per ton ($14/t) – the same as for August sales, and for thick-rolled products – by 150 yuan per ton ($21/t).

Angang and Bengang cut September prices for most products, including HRC and CRC, by RMB 200/t ($28/t).

Taiwan’s China Steel Corporation and Vietnam’s Formosa Ha Tinh Steel will also soon announce their flat prices for September delivery. It is believed that the actions of the leading Chinese manufacturers have put them under pressure.

Hot-rolled coil stocks in the Chinese market rose last week despite a drop in production. Spot prices for these products fell more slowly than futures due to resistance from traders.

World prices for hot-rolled coil continued to decrease in most of the main markets during July. In Europe, the situation was mostly stable, with minor fluctuations, and in the USA and China, prices fell by 4-7%. In particular, Chinese prices reached a 4-year low, and American prices reached the lowest level since September 2023.

As GMK Center reported earlier, the outlook for China’s steel sector is not improving – a multi-year slump in the real estate market has destroyed the country’s largest source of demand for steel. Steel prices are falling, and industry profits are shrinking. At the same time, the government has focused on realigning China’s economy for the long term, and is not offering any relief to the sector.