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| Baoshan Iron & Steel |
Baosteel Announces Price Hike for September Sales
China’s Baoshan Iron & Steel has raised its prices for hot-rolled coils and hot-dip galvanised steel. The price increase amounted to 50 yuan per tonne for September sales. Therefore, Baosteel prices reflect early expectations of seasonal restocking by end-users.
Weak Domestic Demand and Regional Divergence
Current demand across the broader Chinese market remains relatively weak. Buyers continue to adopt cautious purchasing strategies as the summer slump eases. In contrast, Vietnamese producer Formosa cut HRC prices by $8 per tonne due to persistent local sluggishness. Consequently, regional market trends remain deeply divided.
ScrapInsight Commentary
Baosteel's modest price hike attempts to stimulate autumn buying momentum amid a slow seasonal recovery. However, weak underlying demand and regional price cuts in Southeast Asia suggest that upward price momentum will remain capped. Therefore, steel traders should exercise caution before committing to large inventory builds.
