This step is due to the increase in steel prices in the country
Chinese steelmaker Baosteel has raised November domestic hot rolled coil (HRC) prices by 500 yuan per ton ($71/t). This is reported by BigMint.
This step was due to measures to stimulate the economy on the part of the Chinese authorities and a sharp increase in futures quotations for oil and gas rolls on the Shanghai Futures Exchange.
In addition, Baosteel raised prices by RMB 550/t ($78/t) for cold-rolled steel sheet (CRC) and hot-dip galvanized steel.
The company’s decision is likely to prompt other Chinese steelmakers to raise sales prices in November.
As reported earlier, Baosteel intends to increase steel exports to 10 million tons per year by 2028. In H1 2024, the company’s exports reached a record high of 3.04 million tons. In 2023, this indicator increased by 46.6% year-on-year – to a record level of about 5.84 million tons.
In the current year, the company plans to sell 52.2 million tons of steel. In January-June, the volume of sales reached 25.51 million tons (-0.19% y/y). In the second quarter of 2024, sales amounted to 12.99 million tons, which is 3.41% less year-on-year.
In September, Baosteel forecast that demand for hot-rolled steel in China may remain weak in the third quarter, but may show a modest recovery trend in the fourth quarter amid a likely improvement in construction activity.
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