Tuesday, Aug 16,
More of China’s leading steel mills have decided to raise prices of their main products for September bookings in anticipation of stronger demand next month.
Two leading mills, Wuhan Iron & Steel Co Ltd and Beijing Shougang Co Ltd , will raise September prices for their main flat steel products in the wake of a similar move by Baoshan Iron & Steel Co Ltd (Baosteel) last Friday to take advantage of growing demand.
Baosteel usually sets the tone in pricing direction for the domestic steel market, followed by domestic rivals. Baosteel on Friday said that it would raise prices for hot-rolled coil by 60 yuan ($9) per tonne and cold-rolled coil prices by 120 yuan per tonne for September, in line with market expectations.
“Price rises by steel mills reflect climbing prices in the spot market since the end of July as steel mills received strong bookings in August. Steel prices are expected to increase next month as traders and end users need to build up stocks as demand improves,” said Bill Chen, a senior trader with Hong Kong-based Smart Timing Steel Ltd.
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