China: Baosteel raises steel price by RMB 100/t for Aug'20

Baoshan Iron & Steel (Baoshan Steel), the listed-arm of China Baowu Steel Group, has announced a change in its domestic sales list prices for carbon steel hot-rolled coil (HRC) for Aug'20 deliveries.

• HRC price raised by RMB 100/t ($14)
  
  
• Heavy plate prices increased by RMB 100/t ($14)
  
  
• Hot Dipped Galvanized steel prices up by RMB 100/MT ($14)
  
  

The prices comprising the Baoshan works in East China's Shanghai, the Meishan mill in East China's Jiangsu, its Qingshan plant in central China's Hubei province. Heavy plate prices were increased for the Baoshan, and the Dongshan works in South China's Guangdong province.

~The above prices take effect from the date of its publication and the final explanation right to this price adjustment notice belongs to the Marketing Department of Baoshan Iron and Steel Co., Ltd.

In the previous month, the manufacturer had announced a price hike of RMB 280/t for HRC, RMB 150/t for a heavy plate, and RMB 260/t for HDG for Jul'20 deliveries.

Reasons behind price hike:-

• Surge in steel futures- Chinese HRC futures rose about 3% and settled at RMB 3,700/t till 9th Jul'20. Strengthening futures resulted in an uptrend in domestic prices and builds bullish sentiments in the domestic market
  
  
• Improved buying in domestic market - Buyers in China have made large purchases in recent days.
  
  
• Production restriction in Tangshan province - The steel manufacturers in the Tangshan province have been instructed to cut down their sintering and blast furnace activity until 30 Sept'20 to curb air pollution, which in turn might weigh on the production volumes.
  
  
• Govt stimulus for steel-consuming sectors - The stimulus provided by the government for the infrastructure and construction sectors in the country might keep the demand for steel strong in the region.