Bao Steel Raises Coil Price by 200-300 Yuan/t in January

Bao Steel, Chinese integrated steel maker, announced on Monday the firm raises the selling price by 260 yuan per tonne for hot rolled coil while by 200 yuan per tonne for pickled coil and cold rolled coil effective for January 2011. This is the firm’ first price hike for hot and cold coil in recent 3 months. Bao Steel seems to pass higher iron ore cost on the selling price since the firm accepted price hike by major iron ore suppliers for January-March 2011 shipment. Japanese major steel makers also indicate price hike of steel products in 2011 to reflect higher material cost.

Bao Steel raises the selling price by 200 yuan for hot dipped zinc coated steel sheet based on pickled sheet while by 300 yuan for other zinc coated steel sheet. The firm raises the selling price by 250 yuan for colored steel sheet based on aluminum-zinc coated steel sheet and by 150 yuan for other colored steel sheet. As for steel plate, the firm raises the price by 150 yuan. Meanwhile, the firm sets the price of elctrogalvanized steel sheet unchanged. Non-directed magnetic sheet will be raised by 150 yuan while directed magnetic sheet will not be changed. As for stainless steel sheet, the firm raises the selling price by 100 yuan, increasing by 300 yuan accumulatively in late 3 months.

Chinese steel market price is stable with slight fluctuation. Hot rolled sheet market price rebounded in the first week of December after 3 weeks down in Beijing. Supply and demand balance is not tight in the non-demand season of winter and steel makers’ output increases. Bao Steel has shown cautious selling stance for November-December while turned into price hike. Chinese steel market is expected to strengthen uptrend.