Baosteel is raising prices for hot-rolled steel for August sales

The increase in supply reflects expectations of a future improvement in demand

Baoshan Iron & Steel (Baosteel), a subsidiary of the world’s leading steel producer China Baowu Steel Group, has raised prices for its main flat steel products, including hot-rolled coil (HRC), for domestic sales in August. This was reported by MySteel Global, citing the company’s announcement.

The increase amounts to 50 yuan per tonne ($7.4/t).

According to a Shanghai-based ferrous metals analyst, the price rise for August partly reflects the major steel producer’s expectations of a future improvement in demand from end-users.

According to BigMint, the price hike was likely driven by rising raw material costs, particularly metallurgical coke.

Currently, demand for flat steel in the processing sector remains low due to weather conditions, whilst purchasing activity in key steel-consuming sectors remains weak.

It should be noted that in June, Baosteel maintained its domestic prices for flat steel for July sales. The exception was grain-oriented electrical steel, for which the company raised its price by a further 300 yuan per tonne ($44.3/t).

As reported by GMK Center, Vietnam’s Formosa Ha Tinh Steel (FHS) reduced its domestic prices for hot-rolled steel by approximately $40/t compared with the previous month for deliveries in August–September.

In early July, another Vietnamese steel producer, Hoa Phat, announced a sharp reduction in prices for these products for August deliveries. The new offer fell by $34/t compared with the previous month. The domestic market for hot-rolled steel is likely to remain under pressure in the near term, given limited trading activity