|Baosteel's July product prices stay flat
Baoshan Iron & Steel Co has kept major product prices for July delivery flat from June, after cutting them for two consecutive months.
Baosteel's announcement yesterday showed the company aims to stabilize the market although demand is seasonally weak in the summer, analysts said. Still, Baosteel cut the prices for some specialty products for July.
Shanghai-based Baosteel is China's largest listed steel company and its pricing policy typically serves as a benchmark for the rest of the industry in China.
Keeping prices flat may help Baosteel further improve earnings in July. Analysts said Baosteel may see a profit rise this month on a wider fall in iron ore and coking coal prices.
Baosteel blamed lower steel prices when its first-quarter net profit fell 7 percent to 1.51 billion yuan (US$242 million). The steel industry nationwide lost an aggregate 2.3 billion yuan in the same period, the China Iron and Steel Association said.