Baoshan Iron & Steel Co (Baosteel), the listed arm of the world’s top steelmaker China Baowu Steel Group, is raising its list prices for several major flat-rolled products, including hot-rolled coil (HRC), by Yuan 100/tonne ($14.7/t) for domestic sales in June, according to the company’s latest pricing announcement issued late on May 11.

This marks the fourth consecutive monthly price increase for Baosteel's major flat steel products since March, Mysteel Global noted.

The latest adjustment for June reflects a combination of factors, including improving downstream demand, relatively steady supply, and rising raw material costs, according to a Shanghai-based ferrous analyst.

China's hot-rolled coil supply has remained largely stable, with no strong expectation of a near-term increase in output, the analyst noted.

During April 30-May 6, HRC production among the 37 Chinese steelmakers under Mysteel's survey stood at 3.01 million tonnes, down 1.5% on week and 6.2% on year.

On the demand side, the price advantage of Chinese steel products has continued to support exports, while relatively strong orders from domestic manufacturing firms have also strengthened mills' confidence to raise prices.

Back in mid-April, Angang Steel Co and Bengang Steel Plates Co -- two leading flat steel producers based in Northeast China's Liaoning province also raised their HRC list prices by Yuan 100/t for May sales. Both steel companies are expected to announce further price adjustments for June in the coming days.

In addition, China's steelmaking raw material costs including iron ore and met coke have remained elevated recently, prompting integrated mills to firm steel prices, the analyst added.

Meanwhile, on May 1, Shagang Group, China's leading privately owned steelmaker headquartered in East China's Zhangjiagang, announced it would roll over its list prices for Q235 5.5×1500mm HRC and SPHC 4×1250mm HRC at Yuan 3,600/t and Yuan 3,610/t, respectively, for May sales.

Source:Mysteel Global