Posted on 15 Dec 2009
Wuhan Steel Raises Hot-Rolled Prices, Umetal Says
Wuhan Iron & Steel Co., the listed unit of China’s third-biggest steelmaker, raised prices for a second month, signaling rising demand from carmakers and builders in the world’s largest consumer of the metal.
January prices for hot-rolled coil products were increased by 100 yuan to 350 yuan ($51) a metric ton, and cold-rolled coil by 300 yuan to 400 yuan a ton, researcher Umetal said today, without giving other details. Wan Yi, board secretary of Wuhan Steel, didn’t immediately return calls for a comment.
Wuhan Steel joins Baosteel Group Corp., China’s largest steelmaker, in raising prices as manufacturers and builders depleted inventories and the government’s $586 billion stimulus spending boosted demand. Baosteel’s price gains signal that demand growth will outpace supply expansion in 2010, Deutsche Bank AG said last week.
Wuhan Steel, based in Hubei province, fell 0.2 percent to close at 8.54 yuan in Shanghai today, compared with a 1.7 percent gain in the benchmark Shanghai Composite Index.
Benchmark hot-rolled coil prices have gained 13 percent since reaching the year’s low on Oct. 15. Shanghai-based Baosteel raised hot-rolled coil prices by 8 percent to 3,942 yuan a ton on Dec. 10, according to Umetal. The mill raised cold-rolled coils by 550 yuan a ton.
Wuhan kept January prices for heavy plates unchanged, and raised non-oriented silicon steel prices by 500 yuan to 550 yuan a ton, Umetal said.
Wuhan Iron & Steel Group, the state-owed parent of Wuhan Steel, signed an agreement to sell 350,000 tons of hot-rolled coil to South Korea’s Husteel Co., the Chinese steelmaker also said today in a statement on its Web site. It didn’t provide other details.
