Baosteel Lifts January Steel Prices

Baosteel has announced price increases for most steel products by 100 yuan to 300 yuan per ton for January delivery. Other major steel mills such as Ansteel and Wuhan Steel would follow suit.

The group will lift January prices for medium- and low-carbon steel, ultra low-carbon steel and cold forming steel by 260 yuan per ton; pickling steel, CQ-grade non-auto steel by 200 yuan per ton; and Al-Zn alloy coated steel, non-grain oriented electric steel and heavy plate by 150 yuan per ton. Prices of electro-galvanized steel and grain oriented steel will be kept unchanged.

Shortly after the price release by Baosteel, the price of ordinary hot rolled carbon steel rose to 4,380 to 4,400 yuan per ton in the Shanghai market. Iron ore contract prices in the first quarter would rise by 7 to 8 percent, translating into an increase of 100 yuan per ton in the production cost of pig iron.