China’s third largest flat steel major, Baoshan Iron & Steel has increased its flat products prices for third month consecutively for Apr’16 deliveries, thus indicating improvement in country’s domestic steel demand.
As reported, the company has increased its HRC, CRC and hot-dip galvanized plates prices by RMB 200/MT (USD 31/MT). Thus, the effective rate in Apr’16 for HRC (5.5 mm) will be RMB 3,542/MT (USD 547/MT), for CRC RMB 4,286/MT (USD 662/MT and hot-dip galvanized will be RMB 4,227/MT (USD 730/MT). All prices are on ex-works basis excluding VAT.
Along with this, the company has also increased its plates prices by RMB 100/MT (USD 31/MT) and thus for April deliveries the effective rate for 14-20 mm plates will be RMB 2,400/MT (USD 371/MT).
Market participants in China were expecting higher increase in prices by Baosteel. However, given the latest fluctuations in domestic steel prices in China, it is believed that company must have made a cautious decision.
Another Chinese steel major, Wugang Steel has also lifted its flat products prices by RMB 260-400/MT (USD40-62/MT) for April shipments.
Post Chinese Lunar New Year Holidays from 7-13 Feb’16, domestic demand has picked up in China against the backdrop of production cuts, improved domestic demand and Feb-May being the peak season in China for construction activities.
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