As the last article monday said that “China’s Ministry of Commerce (MOC) began an anti-dumping investigation into grain oriented flat-rolled electrical steel imported from the United States and Russia.”

Baosteel Group Corporation and Wuhan Iron and Steel (Group) Corp., which are two major grain oriented flat-rolled electrical steel manufacturers in China, are expected to benefit from China’s anti-dumping investigation into electrical steel imported from the United States and Russia.

An investigation was also launched into subsidies for electrical steel from the United States, the MOC said in a bulletin on its website.

The investigation would cover the alleged dumping behavior and extent of under-pricing of electrical steel products from the U.S. and Russia.

The investigation would strictly follow regulations of the World Trade Organization (WTO) and domestic trade laws to protect the rights and interests of domestic industries, said MOC spokesperson Yao Jian.

Grain oriented flat-rolled electrical steel is in short supply in China, since only several large steel makers can produce such steel that demands high technology and has high added value. China imported 353,000 tons of grain oriented flat-rolled electrical steel in 2008, up 31.75 percent from the previous year.

The price of the product has spiraled down since the fourth quarter of last year, as a large amount of under-pricing grain oriented flat-rolled electrical steel entered into the Chinese market upon the slump of steel prices at home and abroad. It plunged to 20,000 yuan per ton in the first quarter of 2009 from a once record high of 40,000 yuan per ton.

China’s import of grain oriented flat-rolled electrical steel almost equals domestic production at present.

Under heavy pressure from low-price imported steel, domestic grain oriented flat-rolled electrical steel price can hardly rise, although it is predicted by CITIC Securities that China’s demand for grain oriented flat-rolled electrical steel would increase at least 20 percent in 2009.

As grain oriented flat-rolled electrical steel products contribute about 50 percent to the profits of Wuhan Iron and Steel, the steel maker would suffer a lot with price remaining low.

Previously in 1999, Wuhan Iron and Steel filed an application for anti-dumping investigation into cold rolled silicon steel imported from Russia and won the case.

Because the case has just been placed on file, we can not forecast the influence on enterprises now. Just waiting…

China’s steel factories are still in parleys with iron ore miners on long-term supply deals but are aiming to get prices back down to 2007 levels, a senior official with a Chinese steel industry group said on Tuesday (June 2 from Shanghai).

“The iron ore price should fall to the 2007 level. This is still our main target in the negotiation,” Luo Bingsheng, vice chairman of the China Iron and Steel Association, told reporters on the sidelines of a conference.

That would indicate a fall from last year’s levels of 40 to 45 percent.

Luo said CISA had a new proposal for the negotiations, but declined to elaborate.

In general, China steel price is comparative high then before. Hope it could down back.

China steel market continues rallying after Dragon Boat Festival. According to key monitored statistics from SteelHome website, 20mm rebar and 5.75mm HRB price averaged at CNY 3613 per tonne and CNY 3531 per tonne at 28 domestic major cities on May 31st, 2009, up CNY 6 and CNY 32 per tonne respectively compared with May 27th.

Construction steel market maintains stable with low inventory

Wire rod/rebar price changes a little at home market after Dragon Boat Festival. On May 31st, 6.5mm high speed wire rod and 20mm rebar price prevailed at CNY 3520 per tonne and 3420-3430 per tonne in Shanghai market, and that stood at CNY 3520 per tonne and CNY 3600 per tonne in Beijing market, flat over that before Dragon Boat Festival. Wire rod/rebar inventory stands at relatively low level both in Shanghai and Beijing market.

6.5mm high speed wire rod price reached CNY 3620 per tonne in Guangzhou market on May 31st, up CNY 10 per tonne compared with pre-festival price, while 20mm rebar price kept flat at CNY 3650 per tonne. Wire rod/rebar inventory obviously declined and distributors faced little supply pressure as the narrow price gap between Guangzhou market and other markets slackened resources inburst, said a distributor from Guangzhou .

However, distributors generally reflected that market demand remained tepid and transaction performed dissatisfactory recently.

HRB price picks up a little as arrival cost hiked

China HRB market heads up slightly after Dragon Boat Festival as wire rod/rebar market keeps stable. Distributors have strong desires to increase their price in view of arrival cost rise, which mainly contribute to recent HRB price hike.

2.75mm and 5.75mm HRB price prevailed at CNY 3590 per tonne and CNY 3440 per tonne in Shanghai market on May 31st, 2009, up CNY 20 and CNY 40 per tonne compared with May 27th.

Distributors are expecting price hike in view of ex-works price increase amid steel mills, while market transaction slacks a little as end users are sitting on hands after price hike. However, few distributors sell goods at a low price considering of few arrivals during the festival and cost hike. It is learned that market inventory keep at relatively low level in Shanghai at present.

On May 31st, 2.75mm and 5.75mm HRB price prevailed at CNY 3650 per tonne and CNY 3450 per tonne in Tianjin market, up CNY 50 per tonne and CNY 30 per tonne compared with May 27th.

HRB price hike is mainly attributed to strong desires to increase price amid distributors when actual demand remain tepid, said a distributor from Tianjin, HRB price could maintain uptrend in later stage only if end users accept the price hike.

2.75mm and 5.75mm HRB price achieved CNY 3670 per tonne and CNY 3530 per tonne in Guangzhou market on May 31st, up CNY 10 per tonne and CNY 40 per tonne compared with May 27th. Market transaction performs tolerable, said a distributor from Guangzhou , there is limited room for HRB price to further hike in later stage considering of high inventory in Guangzhou .