China’s Steelmakers raise March Prices
Wuhan Steel is first major mill to release March prices
* Baosteel also likely to lift prices – analysts
* Price increases mainly to pass on higher costs (Adds details, analyst’s comment)
SHANGHAI, Feb 14 (Reuters) – Wuhan Iron & Steel Co Ltd (600005.SS), China’s third-largest steelmaker, will raise prices of its major products by 300 yuan ($45.50) per tonne for March bookings as part of efforts to pass on rising raw materials costs to end buyers.
Wuhan Steel’s announcement on Monday, which followed increases to its January and February prices, make it the first domestic integrated steel mill to announce price increases for hot-rolled and cold-rolled coil for March.
Steel mills in China, the world’s top iron ore consumer, have been pushed to raise prices of finished steel products to reflect surging costs of raw materials, including coking coal and iron ore.
Indian ore with 63.5 percent iron content was quoted at $197-199 per tonne on Monday including freight to China, traders said, up 10 percent since the beginning of the year.
“Steel mills have struggled with surging costs of upstream raw materials and have had to raise prices to maintain their current margins,” said BOC International Futures analyst Jiang Zhiwei. “The construction of affordable housing will also bolster demand for steel products in March and April, and we can’t see any obvious signs of price falls in the near future.”
China’s top listed steelmaker Baoshan Iron & Steel Co Ltd (600019.SS), the traditional pricing leader for the domestic steel market, is also expected by market players to …
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