It is reported that China's steel titan Baosteel has hammered out its October prices with reductions for some products and flat adjustment for some others.

Analysts point out the move follows market trend and shows BaoSteel’s ambition to stabilize the market. Besides, it also reflects the differentiation of various steel products. Prices for common products can fall further while demand for medium and high end products is persisting.

According to Baosteel officials, price has been cut by CNY 300 per tonne to CNY 350 per tonne for HR, HR pickled and PPGI kept firm for HDG, EG, galvalume, CR, NGO silicon steel, GO silicon steel and wide & heavy plate and hiked by CNY 100 per tonne to CNY 800 per tonne for electrolytic tinplate and electrodeposited chromium.

Steel products whose prices are maintained stable are mainly applied to manufacturing sectors such as automobile and household appliances, where demand for steel products seems robust. Prices for HR and some other products are pulled down as exploding domestic output triggers an oversupply. But BaoSteel’s prices still hover much higher than market prices.

Baosteel officials reveal differentiation of steel products is emerging. Demand is unlikely to swell further for construction steel including rebar. Prices for common products may decline due to oversupply while demand remains hectic for medium and high end products. BaoSteel’s price adjustment is based on the differentiation.