Steelmakers reduce sheet output to combat slide
CHINA steelmakers will cut sheet output by 5 percent in the fourth quarter in one of several steps to combat tumbling steel prices, the China Iron and Steel Association said yesterday.
The decision was made at an association meeting in Beijing with about 50 major Chinese steelmakers participating, brainstorming to curb falling domestic prices.
The minutes of the meeting were posted on the Website (www.mysteel.com) yesterday.
"Sheet products shall be priced on a quarterly basis (to fight such a situation)," the association said. "Another remedy may be to add direct sales."
Domestic steel prices have been dropping since April while international prices have been climbing since September. The sheet products have been the hardest hit in the current price tumble.
Baoshan Iron and Steel, for example, sells products on a quarterly basis. Most are sold directly to consumers, such as the country"s big-three automakers.
The practice has helped the steelmaker ward off volatile prices fluctuation in the spot market.
Exports are another concern. China will not further cut the tax rebate on steel exports, the association said.
The country has taken several measures to curb the sector since April, including scrapping a tax rebate on exports of pig iron and semi-finished product.
It has also cut a tax rebate on exports of certain steel products.
The decision was made at an association meeting in Beijing with about 50 major Chinese steelmakers participating, brainstorming to curb falling domestic prices.
The minutes of the meeting were posted on the Website (www.mysteel.com) yesterday.
"Sheet products shall be priced on a quarterly basis (to fight such a situation)," the association said. "Another remedy may be to add direct sales."
Domestic steel prices have been dropping since April while international prices have been climbing since September. The sheet products have been the hardest hit in the current price tumble.
Baoshan Iron and Steel, for example, sells products on a quarterly basis. Most are sold directly to consumers, such as the country"s big-three automakers.
The practice has helped the steelmaker ward off volatile prices fluctuation in the spot market.
Exports are another concern. China will not further cut the tax rebate on steel exports, the association said.
The country has taken several measures to curb the sector since April, including scrapping a tax rebate on exports of pig iron and semi-finished product.
It has also cut a tax rebate on exports of certain steel products.