Reportedly, BaoSteel announced prices policy for January 2013 on December 11, 2012 and up revised the prices by CNY 50 per tonne to CNY 150 per tonne except that for hot galvanized and electrogalvanizing products remaining unchanged.
On December 14, 2012, WISCO released steel products prices for January 2013 as well, with HR products prices hiking by CNY 60 per tonne and CR products of CNY 50 per tonne to CNY 100 per tonne, pickling steel up CNY 50 per tonne, tinplating coil up CNY 100 per tonne, 50WW700 and low grade non oriented silicon steel up CNY 70 per tonne, others unchanged.
The successive price hike from BaoSteel and WISCO on one hand is because of the favorable performance of steel prices in spot market and futures market, and on the other hand, the continuously increasing production costs compelled the steel mills up regulate their EXW prices.
However, although the steadily rising economy pushed forward demands for steel products for the time being, the steel industry is still troubled by the overcapacity and high production costs.