Baosteel raises December ex-factory prices on growing demand

Baoshan Iron and Steel Co Ltd (Baosteel), China's largest listed steelmaker, has raised ex-factory prices of its main products for December delivery, the first price rise since March.

Hot-rolled and cold-rolled coil prices will be increased by 100 yuan per tonne, zinc coated steel sheet prices will go up 80 yuan per tonne, and aluminum-zinc coated steel sheet will rise 120 yuan per tonne.

Analysts said the moderate December price hikes were in line with a steel market rebound which starting in September, and reflected Baosteel's prudent approach this year.

"Baosteel's core products are flat steel, and their main end users are home appliance makers, automakers, and shipbuilders," said Qiu Yuecheng, senior analyst at 96369.net, the e-commerce research platform.

"These sectors have been experiencing a recovery recently, giving the steelmaker sufficient orders."

Qiu added that Baosteel's pricing is viewed as a benchmark indicator for other Chinese steel mills, and 96369.net expects other main steelmakers will raise their December prices.

Hu Yanping, a steel analyst with Umetal.com, said strong overseas demand has also driven prices higher.

Recent Chinese customs figures show that China exported 5.15 million tonnes and 4.84 million tonnes of steel products in September and October, respectively, both rising significantly from the same period last year.

"Most steel products were shipped to Southeast Asia, and low-priced products are the most competitive," Hu said.