On September 14, major Chinese steel producer Baosteel Group announced an increase of RMB 300/mt ($45/mt) in its prices of hot rolled steel products for October shipment. Baosteel's example has been followed by Chung Hong Steel Co., Ltd, the subsidiary of Taiwan-based China Steel Corporation (CSC), which has raised its hot rolled coil prices by NTD 500/mt ($16/mt).
In its statement, CSC said that the upward adjustment made by Baosteel has raised the expectations for a recovery in the Asian steel market. The good news, according to CSC, is that steel production will be significantly reduced due to the policy on energy savings and emissions reductions implemented throughout the Chinese mainland. Thus, CSC said, many producers regard this as a unique opportunity to push up market prices. CSC also revealed that it may raise its steel prices in December if the uptrend in prices continues.