Baosteel hikes hot-rolled coils (HRCs) prices by CNY50/mt ($7/mt) on Tuesday for June shipments as China’s domestic demand improves after the COVID-19 pandemic. Baosteel increased prices for the first time in the span of four months.
Price of steel plate was raised by CNY100/mt while the prices for cold-rolled, hot-dip galvanised, electro-galvanised and electrical steel remained unchanged from May. Other China-based steel exporters are expected to follow Baosteel’s lead and hike prices.
Chinese steel futures also rose in the past few days significantly as compared to the prior week. Steel exports offers moved up by $5-10/mt in trading on March 12.
Ferrous scrap price in China rose by CNY400/mt from the last week of April as steel mills have ramped up production. A brewing trade tension with Australia might disrupt iron ore and coal imported over the near terms and benefit ferrous scrap prices.
China’s imported steel prices are also expected to rise with exporters from CIS, South Korea and India raising their offers this week.