Baosteel March 2013 prices hike update

Global Times reported that Baoshan Iron & Steel Co would raise the prices of its major products in March by CNY 100 to CNY 300 (USD 16.08 to USD 48.24) per tonne, or around 5% of its February price, due to increasing orders and rising costs.

The company just 10 days ago announced a February increase in booking prices for its major products by CNY 80 to CNY 160 per tonne making March the fourth straight month Baosteel has raised its prices. The total increase over the past four months is CNY 500 to CNY 570 per tonne.

Mr Wang Guoqing director at the Beijing Lange Steel Information Research Center told the Global Times that "The price hike reflects an optimistic outlook on steel demand in the first quarter.”

Prices of Baosteel products are regarded as a bellwether for China's steel industry. Other major steel mills, such as Anshan Iron and Steel Group and Wuhan Iron and Steel Group, also raised their prices for February.

Mr Hu Yanping a senior analyst at industry portal custeel.com, told the Global Times that "More major steel makers are very likely to follow suit and raise their March prices.”

Mr Hu noted that orders in the industry have been rising during the past two months, given demand from downstream users is increasing for spring, traditionally a high season for construction and the manufacturing sector.

Source - Global Times
(www.steelguru.com)

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