More of China's leading steel mills have decided to raise prices of their main products for September bookings, aiming to catch up with rising spot market prices and in anticipation of stronger demand next month.
Two leading mills, Wuhan Iron & Steel Co and Beijing Shougang Co, will raise September prices for their main flat steel products in the wake of a similar move by Baoshan Iron & Steel Co (Baosteel) last Friday to take advantage of growing demand.
"Price rises by steel mills reflect climbing prices in the spot market since the end of July as steel mills received strong bookings in August. Steel prices are expected to increase next month as traders and end users need to build up stocks as demand improves," said Bill Chen, a senior trader with Hong Kong-based Smart Timing Steel.
Baosteel, the country's biggest-listed steelmaker, said last Friday that it would raise prices for hot-rolled coil by 60 yuan ($9) per ton and cold-rolled coil prices by 120 yuan per ton for September, in line with market expectations.
Wuhan Steel, the country's third-largest producer, plans to raise hot-rolled coil prices by 100 yuan per ton and cold-rolled coil prices by 120 yuan per ton, respectively, in line with Baosteel's increases.
Shougang will lift cold-rolled coil prices by 50 yuan per ton, but has yet to make a decision on hot-rolled coil.
Angang Steel Co is expected to announce new prices later this week.
Steel demand in China is expected to remain robust as the country aims to maintain strong growth boosted by its continued investment in urbanization and industrialization, the China Iron & Steel Association said Tuesday.