Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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January 2019 | Galvanized Steel and Tinplate Market Tracker

Local Chinese prices pick up as suppliers seek to reduce heavy losses: Asian Market Highlights

The close relationship between coated demand and price is well reflected in our margin chart for the integrated coated steel mills, such as Baosteel.

Baosteel, part of China’s biggest steel production company, has decided to target higher coated steel prices from March shipment, albeit from just Yuan 50 per tonne. This follows a sharp decline they announced for December (-200) and January (-300) shipments, which culminated in a price of just yuan 5,657 per tonne for the commercial quality base-price grade of HDG tracked by our price reporting team. One year ago, the company was able to record rapidly rising profits, largely because of higher sales prices, but if the targets over the past 12 months are anything to go by, margins will clearly have retreated last year, contrary to the general pattern within China. According to the NBS, profit margins for so-called manufacturers and processors of ferrous metals rose from 4.6% in the first eleven months of 2017 to 6.3% last year. Fabricators of metal...


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