Tuesday, April 12,
Wuhan Iron & Steel Co Ltd, China’s third-largest steelmaker, is likely to raise its commercial-grade hot-rolled coil prices by 50 yuan ($7.60) per tonne, and keep cold-rolled coil prices unchanged for May.*
Analysts expect steel demand to improve in the second quarter as the construction season kicks off, and major steel mills remain positive that steel prices will rise on a pick-up in demand.
Wuhan Steel had already cut prices for hot-rolled coil and cold-rolled coil by 200 yuan per tonne for April, after announcing earlier in March that it would keep prices unchanged. Steel prices in the Chinese domestic market have rebounded since late March in anticipation of improved demand, with end users expected to build up inventories in coming months.
However, Baoshan Iron & Steel Co Ltd, China’s top listed steelmaker last week announced a reduction in its main product prices of 200-300 yuan per tonne for May. This can be seen as a form of delayed subsidy to users after the company kept prices unchanged for April amid weak demand, rather than suggesting bearishness on demand.
Other major steel mills are also expected to keep prices unchanged for May, traders said.
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