December 02, 2008

Baosteel reduces hot rolled base price for South Korean market

YIEH reported that China’s Baosteel finally finished the negotiation for the cold rolled coil base material price for the fourth quarter with South Korean buyers.

South Korean buyers kept complaining about Baosteel’s CR base material price in the third quarter which was USD 590 per tonnes CFR. Under the pressure from Korean buyers, Baosteel has decided to lower its price by USD 25 per tonnes to USD 565 per tonnes CFR for the fourht quarter.

Regardless of increase in Baosteel base price, other mills still insist their price should be around USD 600 per tonnes CFR. On the other hand, South Korean buyers have decided to stop importing hot rolled coil from WISCO due to its high price, which is USD 595 per tonnes.

Sinosteel signs share purchase agreement of ZCE

Shanghai Securities News reported that Sinosteel Corporation has signed share purchase agreement of Zimasco Consolidated Enterprises Ltd, a holding company of Zimasco on September 19th 2007.

Earlier, Sinosteel has contracted to pour over USD 200 million to purchase 50% shares of ore mine and smelting plant under South Africa's biggest Cr ore company, Samancor Chrome, whose reserve is four or five times of that in China.

Besides, it has acquired Zunyi Ferroalloy Plant and regrouped Jilin Ferroalloy Group. It inked contract with Xinjiang Uygur Autonomous Region Government last year end to invest CNY 200 million to acquire and recombine 70% of Guoyuan Chrome and Taihang Ferroalloy.

Zimasco is the largest high carbon FeCr producer in Zimbabwe, boasting the biggest high grade Cr ore resources in the country.

(Sourced from MySteel.net)