- Rising coking coal prices increase steelmaking costs
- Demand pick-up expectations in Oct support price hike
Baosteel, the world’s leading steel producer, has increased its domestic hot-rolled coil (HRC) prices by RMB 200/t ($30/t) m-o-m for October 2026 sales, amid higher raw-material costs and expectations of a gradual improvement in demand during the traditional “Golden September and Silver October” period.
The increase comes amid higher coking coal costs, which have raised steelmaking expenses and provided stronger cost support to finished steel prices. With input costs rising, mills are seeking higher realisations to offset the increase in production costs.
Meanwhile, the market is entering the seasonally stronger September-October period, when steel demand typically receives support. Expectations of improved downstream buying and restocking in the coming weeks are providing some support to prices. However, actual demand remains subdued, with purchases largely limited to basic requirements and trading activity yet to show a significant improvement.
Baosteel’s price increase therefore comes as mills receive stronger cost support while the market anticipates a seasonal improvement in demand. The hike reflects these improving price-support factors, even though a clear recovery in current consumption has yet to emerge.
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