China’s leading flat steel producer Baosteel has raised domestic prices for hot rolled coil (HRC) for June sales by 50 yuan/t ($7/t).

The company has also increased offers for some other products for June sales. In particular, the price of the company’s coated steel for the domestic market increased by 100 yuan/t. The company’s offer of plates, galvanized steel and cold rolled coils (CRC) remained unchanged compared to May.

The company raised prices following a rise in futures on the Shanghai Futures Exchange after Labor Day (May 1). In addition, steel stocks in China are declining, which is driving up prices. Nevertheless, the price of hot-dip galvanized and heavy plate remained stable during the month.

At the same time, Anshan Iron & Steel (Ansteel), the country’s second largest steel producer, and its subsidiary Benxi Iron & Steel (Bengang) decided to keep flat steel prices at the level of May.

In January-April 2024, China’s steel companies increased steel exports by 27% compared to the same period in 2023, to 35.02 million tons. In April, the country’s steelmakers exported 9.22 million tons of steel, down 6.7% from the previous month. The average export price was $777.6/t (-0.8% m/m).

As GMK Center previously reported, the country’s steel sector is facing a drop in domestic steel demand and certain threats to growing exports.