China’s leading steelmaker Baosteel has hiked the prices of finished flat steel products for July shipments following increased global finished steel prices over the last months. Baosteel hiked HRC and CRC shipment prices for July deliveries by CNY280/mt ($39.59/mt) from June, on Wednesday. The price revision indicates improved finished steel demand in China.
Another major steelmaker in China, Ansteel too raised domestic HRC offer by CNY300/mt ($42/mt) from the prior month, this has led almost all major flat steelmakers in China to raised HRC prices by CNY200-300/mt. Prices for other grades of flat steel rose by CNY150-260/mt ($21-37/mt) from the prior month.
Global HRC prices have remained competitive. Weak demand in the domestic markets has forced steel exporters in India, CIS and Korea to increase their flows to China, where demand is strong. If these suppliers continue to offer HRC at lower prices then imports could rise and Chinese steelmakers will have to lower prices over the near term.
With the easing of steel futures market on Thursday, China’s HRC importers preferred to stay cautious. Amid rainy weather, buyers expect demand to dampened and steel prices to come under pressure in the near future, said traders.