Angang Steel to Mark Up Steel Products in Sep

Chinese steelmaker Angang Steel Co., Ltd. (SHSE: 000898; SEHK: 0347) intends to make up steel products for September 2009, its chairman Zhang Xiaogang disclosed at a meeting.

But the markup will be slightly lower than those of its rivals Baoshan Iron & Steel Co., Ltd. (SHSE: 600019) and Wuhan Iron & Steel Co., Ltd. (SHSE: 600005).

Previously, the two rivals adjusted steel prices for several times. Specially, the markup of Wuhan Iron & Steel even hit CNY 800 a ton, beating industry expectations and boosting the further rise of steel prices.

In addition, Angang Steel said in its interim report that it bought iron ore from its parent Anshan Iron & Steel Group Corp. at a price of CNY 888 a ton. The chairman stressed that the purchasing price would fall about 35% to CNY 578 per ton in the second half of 2009 and have a good impact upon its second-half financial results. He predicted that his company would make money in the second half.

Source: www.163.com (August 20, 2009)

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