China’s Baosteel Increases Prices 17% to 20%; Fastener Prices to Follow
China’s Baosteel Increases Prices 17% to 20%; Fastener Prices to Follow
John Wolz
Baosteel of China announced steel prices will jump 17% to 20% as raw material costs surge.
“This increase is much higher than market expectation,” Jikyoon Park of XL Screw reflected. “Our Chinese suppliers just notified me that all pending quotes are null and void and subject to final confirmation by their factories.”
Previous predictions of 7% to 15% fastener price increase in the next three to six months “is already here,” Park added. “Inventory in our warehouses and many open orders have significantly cheaper cost compared to inventory that will hit our door after April 2008.”
The steel price increase in China follows an agreement by major Asian steelmakers to a 65% increase for iron ore from Brazilian miner Vale effective April 1, 2008. �2008 FastenerNews.com
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