- Rising input costs prompt mill to increase selling prices
- Weak seasonal demand continues to limit buying activity
Baosteel, the world’s leading steel producer, has raised its domestic hot-rolled coil (HRC) and hot-dip galvanised iron (HDGI) prices by RMB 50/t ($7/t) m-o-m for August 2026 sales.
The price hike is likely to have been driven by higher raw material costs, primarily due to a sharp increase in metallurgical coke prices, which rose by RMB 184/t ($27/t) m-o-m to RMB 1,736/t ($256/t) exw Tangshan, Hebei, in June, even as coking coal prices remained stable m-o-m at around RMB 1,550/t ($229/t) Ex-Changzhi, Shanxi.
However, downstream demand remained subdued amid high temperatures and persistent rainfall, with buying activity across key steel-consuming sectors continuing to be weak, indicating that the increase was largely cost-driven rather than supported by any meaningful improvement in market fundamentals.
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