Baosteel Hikes Steel Prices for October

Baoshan Iron & Steel of China announced on Tuesday the firm increases the domestic selling price by 300 yuan per tonne for hot rolled flat steel and by 110-200 yuan for cold rolled flat steel for October. The firm increases the price for almost all items except for part of galvanizing steel and electrical steel under increasing market price while the firm kept the price for hot and cold rolled flat steel in September due to slow demand for automobile. The firm tries to improve the profitability when Chinese makers expand production cut along with the government intention to reorganize the industry.

The firm increased the price by 300 yuan per tonne for low carbon grade, ultra low carbon grade and general cold rolling material hot rolled flat steel and by 150 yuan for other grades. The firm increased the price by 110 yuan for commodity grade cold rolled flat steel and by 200 yuan for high valued products including automotive flat steel. The firm increased the price by 100 yuan for stainless and electrogalvanizing steel, by 260 yuan for hot dip galvanizing steel, by 300-350 yuan for galvannealed steel, by 350-380 yuan for nonoriented electrical steel and by 150 yuan for plate.

Chinese steel market price hit widest increase in second week of September since the rebound in the summer, China Iron & Steel Association (CISA). The hot rolled coil price increased to 4,600 yuan per tonne for product with 3.0 millimeters thick in Beijing, which was 250 yuan higher than previous week. The price increased by 150 yuan to 5,220 yuan in Shanghai. Speculative purchase apparently supports the price increase when the demand is expected to increase in demand season while the makers would cut the production and increase the price.

Chinese hot coil market price showed small range up and down since mid-August. However, the price gained widely in every area in China. The price increased by 140 yuan to 4,520 yuan per tonne in Nanjing, which increased for the first time in 5 weeks. The price increased by 270 yuan to 4,620 yuan, which increased for 2 weeks in a row. The price increased by 220 yuan to 4,500 yuan in Tianjin and by 150 yuan to 4,600 yuan in Guangzhou.