Posted on 13 Sep 2023
Baoshan Iron & Steel Co (Baosteel), the listed-arm of the world's largest steelmaker China Baowu Steel Group, has decided to add Yuan 50/tonne ($6.9/t) to its list prices of carbon steel hot-rolled coil (HRC) for sales in October, according to the company's latest pricing policy released via its official WeChat account on late Monday.
The steel giant's decision marks its HRC price hikes for three consecutive months. Baosteel does not reveal actual list prices for its individual products in its pricing policy but just the margin of adjustment, Mysteel Global notes.
Behind Baosteel's announcement to lift the prices are the mill's rising production costs and sufficient orders, along with downstream sectors' lower stocks of the flat steel and their replenishment needs, according to a market insider.
"(China's HRC) export orders for October remained at a high level, and Chinese-origin products have gained a rising price advantage as the Chinese Yuan fell against the U.S. dollar," said a source. Domestic HRC demand has not shown a strong recovery so far despite the arrival of the traditional robust season for steel consumption, he added.
At the same time, the rather resilient raw materials prices compared with steel prices have caused steelmakers' production costs to move up. For example, Mysteel SEADEX 62% Australian Fines gained $14.6/dmt on month to $120.25/dmt CFR Qingdao as of September 11, while the national price of Q235 4.75mm HRC was assessed by Mysteel at Yuan 3,963/t including the 13% VAT as of the same day, declining by Yuan 30/t on month.
In addition to HRC, Baosteel also raises its list prices for pickled and oiled coils, cold-rolled coils, hot-dipped galvanized steel, electro-galvanized steel, and color-coated coils by Yuan 100/t for October sales, according to the release.
Meanwhile, the company's October list prices for non-grain oriented electrical steel have been lifted by Yuan 100/t too depending on specifications, and those for carbon steel plates and grain oriented electrical steel remain unchanged on month, the announcement showed.
Source:Mysteel Global
