Tuesday, June 2, 2009

Maanshan Sees Gradual Growth In Auto Steel Plate Sales

Maanshan Iron & Steel Co Ltd (Maanshan Steel), the Chinese mainland's second-largest steelmaker, has seen gradual growth in its auto steel plate sales in recent months, sources report.

In May the company received orders for 45,000 tons of auto steel plate products, two times more than orders at the end of 2008.

Maanshan Steel attributed the order increase to successful R&D activities and sales promotion. A recovery in the automobile manufacturing industry also stimulated Maanshan Steel's auto steel plate sales.

Reportedly, Maanshan Steel delivered all the May steel plate orders to its clients before the end of May. Its orders to be delivered included 1,500 tons of outer steel plates for Anhui Jianghuai Automobile Co Ltd and Changan Automobile Co Ltd.

Maanshan Steel is still hoping for further cuts in benchmark iron ore prices. A senior executive of the company said that the 33% cut agreed on by Nippon Steel and Rio Tinto for the Japanese steel maker's yearly contract fell short of the Chinese steel makers' target of 40%.

China Iron and Steel Association (CISA) also requested a 40% price cut for long-term contracts for 2008, saying if the price cut could not be realised, forthcoming contracts based on current prices would lead to losses for Chinese steel makers.

Source: China Knowledge

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