China- Baosteel Increase Steel Prices for September Deliveries

China’s major steelmaker - Baosteel has announced increase in its steel prices for September deliveries. The company has increased its steel prices by RMB 50-150/MT (USD 7-12/MT) in its Baoshan, Meishan and Dongshan base for Sep deliveries.

After increase company’s effective prices for HRC (SS400 5.5mm*1500*C) is hovering at RMB 4929.06/MT (USD 698.38/MT). Prices mentioned above are inclusive of taxes.

Meanwhile prices for plain carbon CR steel also surged by RMB 150/MT in Baoshan, Qingshan, Dongshan and Meishan base.

Further the company also raised its HDGI prices by RMB 150/MT for August deliveries, however kept prices for Heavy plates unchanged.

Company also raised its color coated steel price by RMB 100/MT in Baoshan and Qingshan base for Sep deliveries.

Prior this, last month Baosteel had increased its steel prices by RMB 100/MT for August deliveries.

Chinese HRC prices in domestic market- Domestic HRC prices have remained under pressure amid higher inventories, seasonally weak demand and US’s announcement of 10% additional tariff on 300 billion worth of Chinese imports.

In the beginning of Jul’19 domestic HRC prices stood around RMB 3,920-3,940/MT (Eastern China) which has reached to RMB 3,830-3,840/MT in beginning of Aug’19.

However Chinese govt have taken strict preventive measures to tackle overcapacity by imposing production curbs which may keep steel prices firm in upcoming days in nation’s domestic market.