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    Baosteel'S New Law Of Price Rise Quietly Raised The August Steel Price.

    2008/7/7 0:00:00 44

    The era of corporate upsurge in product prices is getting farther and farther away from us.



    Feedback from many traders shows that Baosteel has "quietly" raised the price of its products in August.



    However, according to the established practice, Baosteel's price in August was fixed in advance in May.

    Baosteel has been insisting on quarterly pricing, releasing the unified price in the next quarter in the middle of last quarter.



    "Baosteel's way of raising prices has changed."

    Wang Zhaohua, an analyst with Tx Investment Consulting Co's steel industry, told our reporter that as early as May, Baosteel's price policy adjustment began to simmering, but the price policy was not released. Until the end, it did not publish the official document as before. "The price increase method of Baoshan Iron and steel company is also very different from that of the past."



    False and real price increase



    Is the price rise of Baosteel "a false shot" or "a blind eye to the sea"?



    Even a number of analysts who have long paid attention to the industry give the same answer to reporters: "(the price of Baosteel) may be just rumor."



    However, many traders representing Baosteel products have said that this is indeed a price increase.



    "The news of Baosteel's price rise is true."

    Ma Zhongpu, a famous steel market expert, told reporters that the price increase was not the same as before, which caused speculation in the market.



    "Although Baosteel did not officially disclose the price adjustment, the price adjustment was probably based on the price adjustment in July."

    Xu Xiangchun, a senior analyst with steel network, also said that the rise in steel prices was mainly cost driven.

    The increase in product prices is mainly due to two reasons.

    Iron ore

    The cost pressure brought by the price increase has been covered by the raise price of big steel enterprises. This time, Baosteel has raised the price of its products, indicating that it continues to be optimistic about the future market.

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