- Price hike reflects expectations of seasonal demand recovery
- Weak orders and cautious buying limit immediate upside
Baosteel 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 September 2026 sales. The increase appears to be based on expectations of improved downstream restocking and buying activity as the summer slowdown eases and the traditional “Golden September and Silver October” peak season approaches.
However, current demand remains weak, with manufacturing orders under pressure and buyers maintaining a cautious procurement approach. While seasonal demand may improve as the summer slowdown eases, the extent of the recovery remains uncertain. Ongoing maintenance at some steel mills may help limit supply pressure and provide some support to prices. However, sustained gains will depend on whether downstream restocking and manufacturing activity improve.
Overall, Baosteel’s hike reflects expectations of improved September demand rather than a broad-based improvement in current market conditions.
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