July 25, 2008

Ma\'anshan hikes steel price

It is reported that Ma'anshan Steel and Baotou Steel has increased HRC prices by CNY 100 per tonne for May and June to CNY 5280 per tonne after Baosteel Group has raise prices by CNY 300 per tonne for May productions.

Insiders disclosed that Ma’anshan Steel has hiked April prices by CNY 200 per tonne for HR products, CNY 300 per tonne for CR products and CNY 400 per tonne for HDG.

According to Mr Xu Xiangchun analyst from Mysteel, Baosteel's price increase aims to narrow the price gap with international prices. The price markup has strengthened confidence in steel prices. However, increasing pressure on downstream industries implies high possibility of government intervention.