Baoshan Iron & Steel (Baoshan Steel), the listed-arm of China Baowu Steel Group, has announced a hike in its domestic sales list prices for flat steel prices for Nov ’20 deliveries.
- HRC and CRC price have been raised by RMB 100/t ($15)
- Heavy plate prices have been increased by RMB 50/t ($8)
- Hot Dipped Galvanized steel prices is up by RMB 100/t ($15)
The prices of the Baoshan works in East China’s Shanghai, the Meishan mill in East China’s Jiangsu, its Qingshan plant in central China’s Hubei, and the Dongshan works in South China’s Guangdong province. Heavy plate prices were increased for the Baoshan and the Dongshan works in South China’s Guangdong province.
Reasons behind price hike : The continual strengthening of demand along with an increase in raw material costs pushed the mills to increase prices for Nov deliveries. Chinese domestic steel prices have strengthened on the back of hike in futures and strengthening RMB against $. 1 USD is currently trading equal to 6.6 RMB which was seen at 6.73 levels a week ago.
In the previous month, the manufacturer had announced a price hike of RMB 50/t for HRC and heavy plate for Oct ‘20 deliveries. For HDG and CRC, the hike was around RMB 200-250/t.
SHFE HRC Jan’21 contract closed at RMB 3,933 compared to RMB 3,795/t on 12 Oct’20.
Baosteel’s performance in Q3 CY’20 : The company reported a 56% q-o-q surge in Q3 earnings at RMB 3.86 billion contrasted against RMB 2.47 billion. The company has also cut a significant amount of RMB 4.9 billion in costs in the 9M CY ’20. It churned out 35.3 mn t finished steel in 9M CY’20. Recovery of the automobile, white-goods and engineering machinery industries drove the company to its best quarterly performance since the end of CY ’18.
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