Baosteel cuts export prices for stainless steel coils amid falling nickel prices

China's Baoshan Iron & Steel (Baosteel) has announced a price cut for austenitic stainless steel products. The cut in export prices is due to the fall in nickel prices on the London Metal Exchange. The company announced that its prices for austenitic stainless coils will be reduced by $ 200 per tonne.

At the nation's largest stainless steel maker, 304 hot rolled 3mm coils are now priced at $ 2,800 per tonne FOB for shipments through early August. After these changes, the price of 304 grade cold coils with 2mm thickness is now $ 3,000 per ton FOB.

Nickel prices on the London Metal Exchange fell to their lowest levels in nearly four weeks. The cash price of nickel has dropped by nearly $ 3,000 per tonne over the past month.

Baosteel is a state-owned steel company headquartered in the Bao Steel Tower in Pudong in Shanghai in China and is considered one of the largest in the world. The company said it will keep its base prices unchanged from June for the rest of its products for July delivery.

This is due to the fact that steel demand in China during the summer months is considered seasonally weak as construction activity is thinning, defining a slow period for the steel industry, prompting large producers to curb steel output. Since the domestic market mainly receives orders from the construction of roads and other infrastructure facilities.