Baosteel Raises Prices, April Quotes to Diverge

SHANGHAI, Mar. 12 (SMM) – Baosteel recently announced to raise its hot-rolled coil prices for April by RMB 150/mt, which was virtually in line with Steelease expectations. However, prices offered for April may vary among steel mills.

The price increase by Baosteel is mainly based on improving sales of Japanese cars and positive outlook for downstream consumption in March and April. However, some other mills already reported difficulty selling goods in February and poorer orders following the price hike in March. In this context, continual increase in April’s price is definitely adverse to these mills. Besides, prices have already begun diverging with some mills selling goods according to market price.

Steelease has confirmed that many large steel mills are under great inventory and sales pressures during March. As a result, Steelease expects prices offered by other steel mills for April will likely remain stable or inch down. Enterprises in steel coil market will continue to sell down inventories during March, with prices expected to fall.