Wuhan Iron and Steel Co yesterday raised the May ex-factory prices of its products by a large margin, Shanghai Securities News reported, citing insiders at Wuhan Steel as saying the hike still lags behind iron ore price surges and further adjustment is possible.
Most products will see prices up 500 yuan per ton, the report said. The move is Wuhan Steel's fourth price hike this year. But the insider said the increased costs of raw materials such as iron ore and coke still cannot be offset by this price surge.
Other steel mills have also adjusted their products' prices. According to the Beijing Lange Steel Information Research Center, major steelmakers' price adjustment frequency has changed from once a month to once every ten days. From March 15 to April 10, Hebei Steel raised their product's ex-factory prices three times.
The steel market has become more active due to the price hikes, but transactions mainly centered around traders, while end users' demands remain limited. Du Zhenquan, who works for a Beijing trade company, said if the steel prices drop, many traders will suffer huge losses.
