Baosteel maintains current flat steel prices for May sales

The company leaves the offer unchanged for the second month in a row

China’s leading steelmaker Baosteel has maintained prices for flat products for sale on the domestic market in May at the level of April, Kallanish reports.

The company has kept its offer unchanged for the second month in a row. The decision includes all flat products produced by Baosteel, including hot-rolled and cold-rolled coils and coated products.

Baosteel also maintained prices for May sales of hot-dip galvanized steel amid mixed trends in SHFE HRC futures, which are affected by weak domestic steel demand.

In February, Baosteel raised prices for March sales for most flat products by 100 yuan per tonne ($14 per tonne) ahead of the peak season.

Other steel mills in East Asia, particularly in Japan, have not yet announced their May sales proposals. They may follow Baosteel’s lead.

As a reminder, global prices for hot-rolled coils faced weak demand in mid-March. The cost of these products showed mixed dynamics in major markets. From March 14 to March 21, HRC prices in China increased by $5/t – to $480/t FOB. Since the beginning of the month, the price has risen by $10/t. It was accompanied by an improvement in domestic demand and exports.

As GMK Center reported earlier, in late March, five key Chinese government departments jointly issued a new regulation aimed at strengthening the management of steel exports and compliance with tax laws. This step is aimed at combating the supply of steel abroad at low prices.