It is reported that Baoshan Iron & Steel has not released the Q3 EXW price on May 20th 2008 as expected and market analysts told Oriental Morning Post that there is no doubt that the delivery price would increase but the steelmaker may need more time to think twice.
As per report Baosteel unveils EXW price on a quarterly basis unlike other steel mills and its price announcement is always considered wane for the steel price trend for following three months.
Market insider said "Baoshan would also refer to global steel prices before hammering out its delivery price. Therefore, current strong price rally in global market would ripple into domestic market."
As a result, Baoshan's Q3 price hike may be smaller than the previous quarter and the price rise for widely used products such as HR, CR may be less than other varieties. In fact, the steelmaker has been criticized by the authority for partly driving up domestic PPI and CPI higher.
