Major Chinese steel companies have raised prices of their main products for September delivery to keep up with higher spot market prices and also to meet expected strong demand.
Wuhan Iron and Steel Co yesterday said it will raise hot-rolled coil prices by 100 yuan (US$15.60) a ton and cold-rolled coil prices by 120 yuan a ton.
Its move came after China's largest listed mill, Baoshan Iron and Steel Co, said last Friday that it would raise cold-rolled product prices by 120 yuan a ton, or 2.3 percent, for September bookings, while maintaining prices of most hot-rolled products.
Changjiang Securities analyst Liu Yuanrui said the mills are raising prices to catch up with an increase in spot market prices.
BOC International analyst Le Yukun wrote in a research note: "We expect steel prices to rise because September and October are the traditional peak season for steel demand, and construction of China's affordable housing will accelerate before the end of November."
The China Iron and Steel Association yesterday said demand for steel in the country will remain strong because the government continues to build affordable homes as well as water and railway projects.
It said high costs mean there is limited room for steel prices to decline.
