SHANGHAI, Mar. 10 (SMM) – As Baosteel is expected to offer prices for April, market concerned prices will negatively affected by the recent price declines and price cuts by major steel mills. However, Steelease was informed that prices offered by Baosteel will remain the strong upward trend with hot-rolled coil expected to be up RMB 150/mt from March. Prices had been up RMB 200/mt and RMB 160/mt in March and February, respectively. Steelease attributes the increase in prices to strong downstream demand and high cost.
Orders from automobile sector, the most important downstream market for Baosteel, were satisfactory, with some orders lining up till April.
With downstream demand recovering in March and April, prices will gain support, prompting steel mills to raise prices.
In addition, the storms in Australia kept affecting iron ore output and shipments, leaving little room for iron ore prices to fall.
In this context, the bullish expectations for iron ore prices and optimistic outlook for downstream demand will drive quotations from steel mills to continue climbing.