China’s leading steelmaker, Baosteel, has decided to maintain its flat steel prices for June, following the same pricing strategy for the third consecutive month. This decision indicates the company’s cautious outlook on the steel market in the near term.
In February, Baosteel made a modest price increase of 100 yuan per tonne ($14 per tonne) for most flat products. This price hike was aimed at anticipating the peak season. However, since then, the company has opted for a more conservative approach, holding steady on prices.
Other major steel mills in China, Taiwan, and Japan are expected to announce their flat steel prices soon. Baosteel’s pricing decisions will likely influence the overall market trends, given the company’s significant presence in the global steel industry.
Steel Price Trends in China and Beyond
In April 2025, Chinese hot-rolled coil prices remained stable at $470 per tonne FOB. Prices have been in a decline since October 2024, but this downturn seems to have leveled off. For instance, May futures for hot-rolled steel on the Shanghai Stock Exchange rose by $7, reaching a range of $446-449 per tonne. This small rebound could signal a potential recovery, but traders remain cautious, anticipating no immediate long-term price hikes.
The lack of significant decisions from the Politburo of the CPC Central Committee at its April 2025 meeting also contributed to the cautious sentiment in the market. Without substantial policy changes, steel traders are not expecting any immediate price spikes.
China’s Efforts to Stabilize Steel Production
Amid the fluctuating steel prices, the China Iron and Steel Association (CISA) continues to focus on regulating steel production. The association aims to restore balance between supply and demand in the steel sector, particularly given the slowdown in the domestic market. CISA’s production control measures are vital for stabilizing the industry, especially in the absence of more effective market mechanisms.
Baosteel’s pricing strategy and the broader efforts by Chinese authorities signal the ongoing uncertainty in the global steel market. Steelmakers and traders worldwide will need to keep an eye on these developments to anticipate future pricing trends.
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