Baosteel has hiked its list prices for flat products for February despite several other mills holding their prices steady from January. The price for silicon steel has continued to increase steadily since December 2016, supported by the merger between Baosteel and Wuhan Iron & Steel Group (Wugang), Kallanish notes.

Chinese manufacturing steel demand has been relatively strong for the season over December 2016 to January 2017. In December Baosteel, Wugang and Benxi Iron & Steel (Bengang) hiked their January ex-work prices for flats products. For January, Baosteel has increased flats ex-work prices by CNY300-600/tonne ($43.32-86.63/t), Wugang by CNY400-800/t and Bengang by CNY500-1000/t. Other than Boasteel, other major mills were apparently content with the increases they had already achieved (see table below).

Baosteel had in fact originally published its flat products price list on 10 January, holding most prices flat. The steelmaker had a change of heart however and released new February prices on Wednesday, in which most prices rose by CNY100-200/t.

Silicon steels are still seeing the sharpest gains. After its merger Baowu Group (formerly Baosteel & Wugang) owns 71% of oriented silicon steel’s capacity, as well as 60% of high-end autosheet capacity. Relatively stable demand and strong negotiating power has thus pushed up silicon steel prices in China.

Chinese steelmakers ex-work price for February 2017 (CNY/tonne) (VAT included)

Source: Steel mills public announcements