Rising iron ore has little effect on Chongqing steel prices

On the 13th, Baosteel Co., Ltd. raised the price of steel in October. This was the second consecutive increase of Baosteel, followed by Wuhan Iron and Steel. The industry believes that the price adjustment is due to the continuous rise in prices of raw materials such as iron ore, coke, and scrap.

According to the October ex-factory price notice issued by Baosteel on the 13th, the company's hot-rolled products are generally raised by RMB 60/t, acid pick-up by RMB 50/t, cold-rolled by RMB 50 to RMB 100/t, and galvanized by RMB 50. 200 yuan/ton. Wuhan Iron and Steel Co., Ltd. increased its stock price slightly, and the price of some products is still lowered. According to Zhang Yi, the Consulting Division of China Metallurgical Group, the prices of raw materials such as iron ore, coke, and scrap have continued to rise recently, and domestic iron ore prices have hit a new high during the year. This is the main reason for steel mills to increase prices. Wu Fang News spokesman Bai Fang told reporters in a telephone interview that Wuhan Iron and Steel's price increase was based on market changes, including rising raw material prices and downstream market demand, which were normal adjustments.

The reporter visited Chongqing’s steel market and learned that the steel products in the Chongqing steel market mainly come from Wuhan Iron and Steel, Heavy Steel, Panzhihua Iron and Steel, etc., and most of the distributors have stocks, so this price increase has little impact on the Chongqing market.

In addition, Baosteel’s price-raising products include cold-rolled products for automobiles and home appliances. Chang’an’s automotive steels are mainly purchased from Baosteel, and Baosteel’s price increases have no effect on Chang’an. Chang’an says that Chang’an and Baosteel are strategic partners. Partners, the purchase price is relatively stable, and is not affected by market price fluctuations. The price adjustment has little effect on Changan.

The other steel mills will not follow the trend of increasing prices? The reporter called Angang Marketing Service. The staff member said that there is no news of price adjustment. The Heavy Steel Sales Department stated that there is no change in the ex-factory price policy for heavy steel, and it may be discussed next Monday.